MBA E - Study: June 2017

Electronic Clearing System (ECS)

A mode of electronic funds transfer from one bank account to another bank account using the services of a Clearing House set up by Reserve Bank of India

Normally for bulk transfers from one account to many accounts or vice-versa

Types

1) ECS (Credit):-used for affording credit to a large number of beneficiaries by raising a single debit to an account, such as dividend, interest or salary payment.

2) ECS (Debit):-used for raising debits to a number of accounts of consumers/ account holders for crediting a particular institution.

Advantages

1) Banks handling ECS get freed of paper handling.

2) In ECS banks simply get the payment particulars relating to their customers. All they need to do is to match the account particulars like name, a/c number and credit the proceeds

3) Wherever the details do not match, they have to return it back, as per the procedure

ECS in India

1) RBI has deregulated the service charges that could be levied by sponsor banks

2) RBI has waived the processing charges levied by RBI and other banks managing the clearing houses till March 2008.

3) operational at 15 RBI centers and at 45 other centers

Whistle blowing is the voluntary release of non phase information as a moral protest, by a member or a former member of an organization outside the normal channels of communication to an appropriate audience about illegal or immoral conduct to the public interest.

Features

1. Done by a member of an organization.

2. There must be information. Difference between blowing the whistle and sounding the alarm

3. Information regarding misconduct.

4. Outside the normal channels of communication

5. Internal whistle blowing and external whistle blowing.

6. Whistle blowing in a voluntary way

7. Moral protest with a motive to correct some wrong. No revenge.

8. Comprehensive Definition Of Whistle Blowing

Conditions Justified For Whistle Blowing

1. Sufficient situation – Harmside of drng

2. All facts and their significance