Administration Manual - B.E.S.T. Undertaking.

1090
cash, on trial, under ECS, from February 2001 the entire salary was sent under ECS.
Similarly, under Phase III, after sending Rs. 200/- during January and February 2002
through ECS, the entire amount of salary to staff under Traffic Payment was made through
ECS from March 2002.
For availing the service under ECS, the User Institution is required to appoint a
Sponsor Bank. This is because for sending the salary of staff under ECS, the RBI credit the
account of various Banks where the employees have accounts and debit the account of
Sponsor Bank for the total salary amount payable on date of settlement. ( It is statutory
requirement for all Banks to have account with RBI authorities ).
The system of disbursement of salary under ECS is very simple, risk-free, fast and
above all economical. Under the system, the User Institution is required to make an
application to Sponsor Bank for registration. The application form is then forwarded to RBI
who after scrutiny allot User Number to the institutionary Bank.
As per the guidelines of ECS, the RBI has fixed the charges of destination Banks, as
Re. 1 and 50 Paise respectively per transaction. The Sponsor Bank charges may be decided
by the User Institutions in consultation with them. In our case, against letter of enquiries
sent to all Banks, Bank Of India quoted Rs.2/- per transaction per month. Being the lowest
offer, Bank Of India, Electric House Branch, was appointed as our Sponsor Bank. For easier
accounting/reconciliation, it is desirable to have a separate account for salary purpose. With
this in view a Current Account No. 9175 has been opened with Bank Of India, Electric House
Branch for ECS Salary payment.
Under the system of ECS, we furnish the details of staff viz. Name, Bank Code,
Branch Code, S/B Account Number , Total salary payable etc. in a floppy disk to RBI