IFSC Code and MICR Code for
- IFSC Code (used for RTGS and NEFT transactions)
- MICR Code
- Phone Number
- Branch Code
What is IFSC Code?
IFSC, Indian Financial System code is a unique 11 digit character usually printed on the cheque leaves and other bank-sponsored material. First four characters of the number represent the bank accompanied by a default number '0' and the last six digits represent the branch of the bank. Banking system uses this number for electronic payment applications including RTGS (Real Time Gross Settlements), NEFT (National Electronic Funds Transfer), IMPS (Interbank electronic instant mobile money transfer service), Immediate Payment Service and CFMS (Centralized Funds Management System). The alphanumeric characters help in the identification of bank and the branch with which the account is held.
Why is IFSC code necessary?
Monetary transactions are now not limited to national boundaries but have expanded to the international boundaries. In order to track bank wise transactions, RBI has issued certain codes that help in the verification of bank and the respective branch. IFSC code is used for various electronic payment mechanisms developed by RBI such as NEFT, RTGS etc. The banks that are using the electronic payment modes use IFSC code to identify the bank branch in the country.
Types of online money transfer mode using IFSC code
There are several modes of online money transfer that requires IFSC code. Following are the types:
National Electronic Funds Transfer (NEFT): NEFT is a popular mode for one to one fund's transfer. NEFT enables the individuals, corporate and firms to transfer funds from one bank to another and from one account to another within the same bank via internet banking. As per the online mechanism, the system reads the unique 11 digit IFSC code to identify the destination bank and branch. IFSC code is also used to route the message correctly to the respective bank and branch.
Real Time Gross Settlement (RTGS): RTGS is another form of transferring funds online. The transfer of high-value transactions is done via RTGS. The minimum amount for RTGS in India is 2 lacs. Just like NEFT, funds transferring require IFSC code for the identification and verification of source bank and destination bank and its branch. The banks involved verify the branch and its IFSC code before processing the transaction.
Immediate Payment Service (IMPS): IMPS is an online funds transfer mode that enables the instant fund transfer from one bank to another and one account to another. The service is available 24 X 7 and the amount is instantly credited into the account of the beneficiary. The system instantly verifies the bank's unique IFSC code to identify the concerned bank and branch and transfers the funds.
Benefits of transferring funds online via IFSC code
Format of IFSC code
0 (Default, for future reference)
What is MICR?
MICR stands for Magnetic Ink Character Recognition. It is a specialized 9 digit code printed at the bottom of bank's cheques and other negotiable documents. MICR technology is used as the base of authentication and originality of paper-based documents. Bank clearinghouse uses MICR technology for making the cheque clearing process efficient. MICR has equal significance as IFSC. IFSC is important in transferring amount online whereas MICR is important in transferring amount via cheque.
How is MICR used?
The cheque is sent to the central processing house after depositing in the bank where the readers or sorters read the MICR code through magnetic charges. The magnetic charge reads the bank code, bank account number, and cheque number. The MICR can easily readable even if it is overprinted or overwritten.
Difference between IFSC and MICR
Basis of Distinction
Used for electronic funds transfer including NEFT and RTGS
Used in cheque clearing process and other negotiable instruments.
Digits in the code
It is 11 digits code comprising the bank and branch code.
It is a 9 digit code comprising of bank number and account number.