IFSC: INDIAN FINANCIAL SYSTEM CODE
IFSC code having eleven digit unique alpha numeric code and it is used to find different branches for each bank.This IFSC code given on cheque books of individual,corporates and firms etc.IFSC is also required for transvering the money national wide through NEFT and RTGS.IFSC code is given by the Reserve Bank Of India.
If you want know the IFSC code for any bank you have the following format :
- Name of the bank (EX:State Bank Of India)
- Name of the state
- Name of district and
- Branch name.In this we know IFSC code, MICR CODE ,the branch address and contact number.
IFSC code format :
The IFSC having eleven alpha numeric code in that the first four digits tells the which bank and fifth one is a number ( kept as zero ) and last digits tells the which branch of that bank.For EX: UTIB0000013 the first 4 digits tell the bank name her UTIB for Axis bank ,5th digit is zero and last 6 numbers tells the branch name of axis bank..
USE:
The IFSC code is given by the RBI Bank to differentiate the individual branches of each bank.It is also used to national wide money transcations like RTGS and NEFT.
RBI RESERVE BANK OF INDIA:
The RBI is established in 1st april 1935 under the British rule with the provisions odf Reserve Bank of India act 1934.The original share capital was divided into shares of hundred each fully paid, which were initially owned entirely by private shareholders.In Januvary 1st 1949 the RBI was nationalised.The RBI gives the IFSC codes to all branches to differentiate each of them of that bank.
The IFSC codes also used electronic payments like Immediate payment service,an inter bank eletronic instant mobile money transfer service(IMPS) and centralised funds management system.
MICR CODE:
Magnetic Ink Character Recognition is a printing technology used to print alpha numeric details. MICR code is printed on cheques they let cheque processing,easy.MICR codes easily read by humanbeings also but cheque is not allow to transfer money till then computer confirms the MICR code that ink charecters are original.
The MICR code ink on cheque contains iron oxide in it. when machine decodes the these charecters,first it magnatises the code in plane paper and passes it over a MICR header.when the chareters starts moving to header,it turns these charecters into waveform that can easily recognized by the computer.
It is 9 digit numeric number signifies the important information about the bank and the transaction.The first 3 digits of MICR code tell the city code which indicates city of that branch is located.In most of cases the first 3 digits pin code ,the next 3 digits indicate bank code i.e identifies the bank and last 3 digits indicates the bank branch name that identifies the branch location.
DIFFERENCE BETWEEN IFSC CODE AND MICR CODE:
NEFT:
NATIONAL ELETRONIC FUND TRANSFER it is started in NOV2005.NEFT is one of the most prominent electronic funds transfer systems of India.NEFT is facility to provided to a bank customers to enable the transfers securely and easily on one to one basis.It is done via eletonic basis.This NEFT requires the IFSC codes for tranfer the money.RTGS:
REAL TIME GROSS SETTLEMENT SYSTEM are specialist fund transfer system where transfers the money / securities takes place from one bank to other on real time on "gross " basis. RTGS in "real time" means money transaction is not subjected to any waiting period.This RTGS requires the IFSC codes..The IFSC codes also used electronic payments like Immediate payment service,an inter bank eletronic instant mobile money transfer service(IMPS) and centralised funds management system.
MICR CODE:
Magnetic Ink Character Recognition is a printing technology used to print alpha numeric details. MICR code is printed on cheques they let cheque processing,easy.MICR codes easily read by humanbeings also but cheque is not allow to transfer money till then computer confirms the MICR code that ink charecters are original.
The MICR code ink on cheque contains iron oxide in it. when machine decodes the these charecters,first it magnatises the code in plane paper and passes it over a MICR header.when the chareters starts moving to header,it turns these charecters into waveform that can easily recognized by the computer.
It is 9 digit numeric number signifies the important information about the bank and the transaction.The first 3 digits of MICR code tell the city code which indicates city of that branch is located.In most of cases the first 3 digits pin code ,the next 3 digits indicate bank code i.e identifies the bank and last 3 digits indicates the bank branch name that identifies the branch location.
- 110 city code(delhi)
- 229 bank name(ICICI)
- 003 branch name(gurgaon).
DIFFERENCE BETWEEN IFSC CODE AND MICR CODE:
- IFSC code is eleven digit alpha numeric code, MICR code is nine digit number.
- IFSC code is developed to initiate electronic money transfer between the banks in India and MICR code is magnatic ink recognisation for making cheque processing easily and fastly
