IFSC ( Indian Financial System Code ). IFSC Code is a unique eleven-digit number which is a combination of alphabets and numbers. IFSC code is allotted by the Reserve Bank of India (RBI) to all banks and its branches. The IFSC code of a bank can be commonly found on a bank account passbook, cheque leaf issued by the bank or on the RBI website. Any kind of fund transfer through a bank requires a valid IFSC. The different types of fund transfers are NEFT, RTGS and IMPS.
Ways to find IFSC codes
Benefits of IFSC Code are :
Benefits of MICR Codes are:
MICR code enables efficient, quick and error-free processing of cheques. This is possible with magnetic ink, reading machines and technology used in MICR.
Benefits of MICR Codes are:
|Up to Rs. 10,000||Rs. 2.50||Min. 2 Lakhs||Rs. 5.00|
|Rs 10,000 – 2 Lakh||Rs. 15.00||Rs. 26||Rs. 10.00|
|Above 2 Lakh||Rs 25.00||Rs. 51||Rs. 15.00|
* The above-mentioned charges are only indicative in nature. Each Bank has their own charges within these limits. Check charges from respective bank’s website.
NEFT – 8 A.M – 7 P.M (Weekdays)
RTGS – 9 AM – 4:30 P.M (Weekdays)
IMPS – 24 hours 365 days
IFSC Code enables you to transfer money in a quick, easy and hassle-free manner. RBI has assigned IFSC codes specific to each bank and its branches. Fund transfers are done through NEFT, RTGS and IMPS fund with a valid IFSC code. Let’s find out how IFSC Code works while transferring money. Assume the IFSC code of ICICI Bank, Mumbai branch is ICIC000027.
Steps to transfer money with IFSC code:
When a fund transfer is initiated by the payer be it NEFT, RTGS or IMPS. He/she has to provide the bank details such as bank name, branch, account number and the IFSC code of the payee. Once the payer provides all the required details only then will the fund be transferred to the account of the payee with the help of IFSC Code in an error-free manner. Fund transfer with IFSC code is secure, convenient and takes minutes from the time of initiation.
Nowadays you can transfer funds through SMS on a mobile with the help of IFSC code. Let’s see how:
Magnetic ink character recognition code (MICR) is a technology that enables faster processing of cheques by recognizing unique characters printed on the cheque. MICR consists of a 9 digit code. The first three digits of the MICR code represent the city, the next three give the bank code and the last three digits denote the branch of the bank. Similar to an IFSC code, every branch of a bank has a specific MICR code. While IFSC is used for online fund transactions, MICR is used for cheques.
Let’s understand the difference between IFSC and MICR
|IFSC Code||MICR Code|
|Used to facilitate electronic fund transfers between banks and individuals in India.||MICR code is to facilitate and make cheque processing more efficient.|
|IFSC is an 11 character alphanumeric code.||MICR is a 9-digit code.|
|MThe first four characters indicate the name of the bank.||The first three digits represent the city code where the bank branch is located.|
|Last 6 digits represent the bank branch location.||Last three digits indicate the code of the bank branch.|
Monetary transactions are not limited to online transactions, NEFT, RTGS or IMPS alone. There are other banking instruments such as cheques which require a similar verification and authentication procedure. This is where Magnetic ink character recognition code (MICR) is necessary before processing a transaction for a cheque.
IFSC stands for Indian Financial System Code. An IFSC code is a unique 11-digit number, which is a blend of alphabets and numerals.
An IFSC code is not the same as a branch code.
A branch code is a unique identifying code for a particular branch of a bank. Each bank branch is differentiated by its branch code.
Magnetic Ink Character Recognition (MICR) is a 9-digit code that helps identify a specific bank branch. This MICR code is a part of the Electronic Clearing System (ECS), used to clear cheques on a routine basis.