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What is Electronic clearances?
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Answer Posted / anandsurya
It is a mode of electronic funds transfer from one bank
account to another bank account using the services of a
Clearing House. This is normally for bulk transfers from
one account to many accounts or vice-versa. This can be
used both for making payments like distribution of
dividend, interest, salary, pension, etc. by institutions
or for collection of amounts for purposes such as payments
to utility companies like telephone, electricity, or
charges such as house tax, water tax, etc or for loan
installments of financial institutions/banks or regular
investments of persons.
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