IFSC code is needed whenever you have to transfer money online. This code differs from one bank to another as it is the identity of a bank in the form of numbers. The code has the initials from the bank’s name and then the numbers. In this article, we have focused on the functioning of IFSC code and how can you understand in a better way. You can later share it with your friends or family, there is no harm in sharing the information with everyone.
What do you mean by IFSC code?
IFSC code consists of 11 digit alpha numeric characters. It is an essential feature in all banking transactions since all virtual payments or electronic transfer of funds require correct IFSC code of beneficiary bank or branch. Meanwhile, at the back-end this code is used to streamline payments amongst accounts, banks and branches within banks.
What is MICR Code?
MICR stands for Magnetic Ink Character Recognition. It is used for funds transfer to other banks in a secured manner. This character is in a format that is readable only the banks, through which transactions can be processed in a hassle free manner. MICR is of 9 characters, out of which the first three digits represents the city, second set of three digits represent the bank code and the last three digits represent the relevant branch code.
What is the difference between IFSC Code and MICR Code?
Many people do not understand the difference between IFSC code all bank and MICR code:
- IFSC usually helps in the correct fund transfer in case of online transactions from one party to another, whereas MICR helps in the correct and safe process of cheque payments.
- IFSC contains 11 characters that are made up of alphabets and numerals, whereas MICR contains 9 characters – all digits.
- Magnetic Ink Character Recognition Code has been in existence in the banking sector for quite some time now, whereas Indian Financial System Code is a relatively new concept which was introduced only when NEFT (National Electronic Funds Transfer) and RGTS (Real Time Gross Settlement) came into the scene.
What is the importance of IFSC Code?
The Reserve Bank of India controls all banking affairs in India and is the single authority to issue IFSC codes to its associate banks. The record keeping of such issued IFSC codes is also taken up by RBI.
Where can you check IFSC code all bank?
There are n number of IFSC code finders online. You can pick any of these and check for the bank. Below are the details that you need to fill in the code finder:
- Name of the bank
Thus, with all the above information, we hope that you will be able to check the codes without anyone’s help. The information here can be shared with others as well as they might have the same query as you do. So, do not hesitate to share the knowledge with others.