The dividend declared by a company is paid to the shareholders in either of the following two ways: National Electronic Clearing Service (NECS) also called the ECS or by mailing the dividend warrants to the physical address of the investor. 



The ECS facility provided by the Reserve Bank of India gives you, as an investor, the option of receiving dividends directly in your bank account rather than receiving dividend warrants through the post. Under the ECS option, the company credits the dividend amount directly to your bank account. The transaction is labeled as ECS in the bank statement or passbook. The Company sends an intimation to the investor after the transaction has been processed.