IFSC Code

In the case of a cheque, payment amounts are deducted from your bank account once the cheques are processed. The Magnetic Ink Character Recognition Code (MICR Code) helps in the recognition, processing, and clearance of such cheques. All the banks have also been advised to print the IFSC of the branch on cheques issued by branches to their customers as shown in the image above. Once you place a request to add a payee, the bank will verify the details on your registered e-mail and phone with a OTP (One Time Password).

IFSC Code

• IFSC is a 11 digit code The first four characters of this alphanumeric code disclose the name of the bank.
• IFSC is used to transfer funds through three primary electronic fund transfer modes – NEFT, RTGS and IMPS.
• The code was introduced by RBI to make NEFT (National Electronic Fund Transfer) quick and efficient.
• No, IFSC codes are used for domestic transactions within India, while SWIFT codes are used for international transactions.
• These unique codes help identify bank branches and verify transactions, ensuring your money reaches its intended destination safely and efficiently.
• The sample cheque which uses MICR technology is depicted in the figure-1.

The IFSC stands for the Indian Financial System Code, a unique identifier assigned to each bank branch in India. Enter the name of the recipient as in the bank records followed by the IFSC code of the recipient’s bank branch. It is crucial to enter the correct IFSC during an online transfer, as it ensures that the funds reach the intended recipient. what are ifsc and micr codes If you enter an incorrect IFSC, your bank will decline the transaction.

IFSC Code Finder

For example, MICR is not required for any electronic fund transfer but IFSC is required for the same. On the other hand, the branch code does not necessarily perform any banking function but simply acts as a piece of information that can be used to identify a particular customer’s bank branch. MICR code contains the details of the cheque such as serial number, the 9 digit number. The first three digits represent the city, next three represent the bank and the last three digits indicates the branch. The code was introduced by RBI to make NEFT (National Electronic Fund Transfer) quick and efficient. IFSC code is developed to initiate electronic money transfer between banks within India, MICR is a Magnetic Ink Recognition technology for making cheque processing faster and simpler.

• The final steps after clicking ‘Continue’ are confirmation screens.
• It is important to keep these codes handy for smooth and hassle-free banking operations.
• The Indian Financial System Code (IFSC) enables such online transfers.
• In addition, we also maintain the MICR codes of all banks in India.
• The MICR Code allotted to a bank branch is printed on the MICR band of cheques issued by bank branches.
• At Kotak Mahindra Bank, we ensure to provide you with round-the-clock customer support assistance.

Difference between IFSC Code and MICR Code

For example, a counterfeit check can be detected easily, as the magnetic ink line will not respond to magnetic fields and thus will provide an incorrect code when scanned. This code also helps in avoiding the errors that can be generated in the case of manual clearing of the checks. The IFSC code plays a vital role in maintaining accurate records of financial transactions.

You can usually easily find this on the website of your bank or on any third-party financial website. NEFT or National Electronic Fund Transfer is a nationwide electronic fund transfer system that lets you transfer money from one bank account to another. It is a safe and hassle-free process as it is monitored by the RBI. All NEFT settlements are made in a batch-wise format, and funds can be sent through NEFT to accounts of all Indian NEFT-enabled banks. To initiate an NEFT transfer, you would need the account number and name of the receiver, along with the name of the bank branch and its IFSC. The IFSC code of each bank branch is assigned by the Reserve Bank of India.

Where to Find the IFSC Code?

Just like an IFSC code, each branch of a bank is assigned a unique MICR code. The front sheet of your bank passbook contains the account and branch details, including the IFSC. So, it must be noted that both are remarkably difference from each other. The advent of the electronic form of payment has paved the way for greater and greater emphasis on the use of the IFSC Code. Today, you cannot remit amounts to a beneficiary unless you have the IFSC Code, which is of great signficance than ever before.

It is possible to place a request at these banks for electronic fund transfer. You can make a fund transfer at these branches even if you do not have a bank account with the branch. Some banks have enabled the option of making a NEFT transaction at their ATM machines.

Yes, if a bank branch is relocated or merged, the IFSC code will change to reflect the new branch details. The Indian Financial System Code is a combination of alphabets and numerals, with the first four characters representing the name of the bank. The fifth character is always a zero, and the remaining six characters are either numbers or alphabets that denote the branch code. MICR code is a code printed on cheques using MICR (Magnetic Ink Character Recognition technology).

RBI has assigned these codes to the bank branches to perform NEFT, RTGS and IMPS fund transfer in a smooth way. To know how IFSC Code works while transferring money, let’s take an example here. Have you ever wondered how electronic money transfers in India are so seamless and secure? In this blog, we’ll delve into the IFSC code, its format, its importance, and how it functions to keep our financial ecosystem running smoothly. We maintain a comprehensive and updated database of bank branches along with the corresponding BIC codes (formerly known as SWIFT codes) and the IFSC codes. BIC codes are used to perform an international fund transfer between two countries.

ECS Credit enables payment of amounts towards distribution of dividend, interest, salary, pension, etc., of the user institution. In addition to the cheque book and official website, customers can also contact the bank’s customer service helpline or visit the nearest branch to obtain the IFSC and MICR code of the bank. It is important to keep these codes handy for smooth and hassle-free banking operations.