Inaugurated in September 2008, the NECS scheme covers online transactions including periodic payments of interest/ salary/ pension/ commission/ dividend/ refund or bulk collection of utility bills/insurance premium/school fee/ loan installments by companies and corporations.
NECS enables the centralised processing of the ECS transactions at the National Clearing Cell in Mumbai and participating banks only need to upload the relative files to a web server, with online data validation facility. This service helps the users and member banks to send, receive and process the data files at one centralised place.
In order to encourage the use of the online payment system, the Reserve Bank has asked the banks to assist customers in preparing formats for crediting amounts in the accounts of beneficiaries across India. Presently, only the credit variant of NECS is available, but the Reserve Bank also plans to introduce NECS-debit, a system that would enable Indian institutions and companies to collect payment online from their customers. During May 2009 alone, almost 2 million transactions worth Rs. 30 billion were processed.
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