In the present times, monetary or fund transfers are not restricted to a country or a bank making it mandatory for financial organisations to carry out a verification procedure before processing funds. To make the verification procedure quicker, financial organisations and banks make use of different codes that simplify and automate their processes. MICR code and IFSC code have a significant role to play in this phraseology. Therefore, it is essential to have a clear understanding of these codes.
Find here : list of IFSC Code
IFSC Code
The IFSC code or Indian Financial System code identifies all NEFT and RTGS participating bank branches exclusively. This code is used by electronic payment mechanism applications like NEFT or National Electronic Fund Transfer, RTGS or Real Time Gross Settlement and CFMS or Centralised Funds Management Systems. Individuals who want to transfer funds from one bank to another need to know this code so that the beneficiaries get the funds directly into their bank accounts. It is worth noting that with the use of this code in online transactions, there is no physical dispatch of cheques between the banks and the clearing house involved. This exclusive code mechanism is specifically used for instant money transfers online.
How is the Indian Financial System Code Formed?
The
Indian Financial System code is an 11 digit code that consists of alphanumeric characters disclosing the bank name and the exact branch location of the bank. The fifth character of this code is a zero used for accommodating expansions of bank branches. This code is printed on cheque books that are issued to bank account holders. You can get the IFS code of your bank branch by having a look at your cheque slip.
MICR Code
MICR stands for Magnetic Ink Character Recognition. As is suggested by the name, the MICR code is a character recognition technology that helps in faster cheque processing. The branches of all banks are given exclusive MICR codes as this helps The Reserve Bank of India in identifying the bank branches and in speeding up the cheque clearing procedure. This code is printed on the bottom of a cheque leave of a bank chequebook.
How is the Code Formed?
The MICR code is a nine digit numeric code with each three digits signifying important information regarding the bank and the transaction. First three digits of MICR indicate the city code or the city that serves as the location of the bank. Most of the times, the first three digits are the first three numbers of the PIN code of an area. The next three digits signify the code of the bank or the bank identity, and the last three digits indicate the branch code of the bank or the i
dentity of the bank branch location. So, how and where can you find the updated list of MICR and IFSC codes?
Finding the Updated List of MICR and IFSC Codes
It is important for net banking and online banking customers to be knowledgeable about the IFSC and MICR codes of the beneficiaries. The best way of getting hold of the updated list of the MICR and IFSC codes is carrying out an online search. If you go online and search for the updated list of MICR and IFSC codes, you will probably get some sites displaying valuable and useful information about this subject. The only thing that you need to do is type the name of the bank and the branch. There are boxes available on the sites displaying IFSC and MICR codes. You simply need to put the name of the bank in a box and select the bank branch accordingly. You will immediately have a drop down menu that will help you in finding the right MICR and IFSC code for your particular bank branch. However, the best thing that you can do is check the database of The Reserve Bank of India for getting the IFSC and MICR codes of different banks and their respective branches.
It is also imperative to remember that the exclusive identification characters of the banks keep on changing from time to time as per rules brought forward by The Reserve Bank of India. Therefore, it is essential for individuals to contact their respective bank branches for confirming identification numbers received from third parties.
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