IFSC Code: Find IFSC, MICR Codes

IFSC Code:

IFSC stands for Indian Financial System Code, it is made up of 11-digit alpha-numeric code, it identifies a bank branch which participates in any RBI regulated funds transfer system. The IFSC code helps to transfer money using RTGS, NEFT or IMPS method.

The First 4 digits of the IFSC represent the bank and last 6 characters represent the branch. The fifth character is zero.

Why is an IFSC code required?

The IFSC code is used to perform electronic fund transfers across various banks in India. Most major bank branches involved in bank-to-bank electronic payments have a unique IFSC number. The IFSC code is used by banks to identify the source and target bank branches for fund transfer. It is also used to exchange messages and information across the banks.

What is MICR Code?

The MICR Code is an older code introduced by RBI in early 1980 to simplify funds transfer via cheques or DD. MICR stands for Magnetic Ink Character Recognition which is a technology used in the banking industry in printing the MICR codes. 

MICR code is a 9-digit code that uniquely identifies a bank and a branch participating in an Electronic Clearing System (ECS).

First three digits: The first three digits of a MICR code determines the city in which the bank account is held.
Next three digits: The next three digits of the MICR code is used to identify the bank
Last three digits: The last three digits of the MICR code is used to identify the bank branch

MICR code is printed on the bottom of the cheque or DD next to cheque number using a special magnetic ink. It is also normally printed on the first page of the bank savings account passbook. It is possible to extract information in the MICR code using a special machine even if there is some writing or stamping on top of the MICR code.

What is the use of MICR Code?

MICR code helps in processing of cheques by machines. This helps in faster processing of cheques. MICR is required to be mentioned in various financial transaction forms such as investment forms or SIP form or forms for transfer of funds etc.

How is the MICR Code used?

MICR code is very commonly used in the manual fund transfer process. After a cheque is deposited by recipient in his or her bank, recipient bank process the cheque, and sends a transfer of funds request to source bank. The cheque is physically sent along with the transfer request to the source bank. After source bank validates the cheque, funds are credited to the recipients bank.

The MICR code helps automating the clearance process, this results in faster fund transfer. As the MICR code can be read by a special cheque reading machine, not only this helps in speeding up the fund transfer process, it also minimizes human errors and offers good protection against fraud. These days as MICR code is quite prominent, any cheque or DD not having a MICR code is easily recognized as a fake cheque or DD.

Benefits of Electronic Fund Transfer vs Manual Fund Transfer:

In a manual fund transfer, there are multiple steps required to complete the process, which results in needing more time, in Electronic, process is done in a much lesser time and protects from fraud. RBI, the central bank of India has assigned the maximum time for a fund transfer by cheque, fixing maximum 3 working days for cheques to be cleared. Cheques which are inter-state or inter-city, commonly known as outstation cheques are allowed maximum period of 7,10 or 14 days depending on the distance between source and receiving banks. This means the maximum time allowed for a outstation bank in a remote location is 14 days. At times, cheques get lost in transit in which case a cheque must be re-issued. Some banks charge service fee for outstation cheques to cover incidental expenses to manually transfer cheques.

What is cheque number?

A cheque number is the 6-digit number assigned to each cheque leaf to make it unique. It is commonly written on the left-hand side at the bottom of the cheque. 

Every user is advised to check number on each cheque leaf when receiving a new cheque book, this is to ensure no cheque is missing from the cheque book.

Users are advised to record the transaction for each cheque used in the slip attached at end or start of the cheque book. In this record, details such as cheque number, date of cheque, amount and payee are recorded for future reference.

What are the form of electronic fund transfer?

Electronic fund transfer can be done in three ways, by NEFT, RTGS and IMPS.

NEFT: This is just like an electronic cheque, bank processes NEFT requests in batches, usually done once every hour. After a NEFT transaction is placed, one needs to wait for next NEFT batch process in order to process the transfer. If the NEFt request is placed after the cut-off time for the last batch in a day, the execution happens on next working day.

RTGS: The RTGS is used for high value transfers where funds are needed immediately. Once a RTGS request is made, funds are transferred instantly by the recipient bank. RBI has guidelines advise all banks to credit recipients account within 30 minutes. As the RTGS transactions happen in real time, RTGS transactions can only be done within banking hours although some banks have specific timings assigned for RTGS transactions.

IMPS: The IMPS is the new electronic fund transfer option which can be used for transferring funds 24x7 including Sunday and even bank holidays.

The NEFT and RTGS transactions are governed by RBI while IMPS transactions are governed by the NPCI.

How can I initiate an electronic fund transfer?

The most common way to make an electronic fund transfer is through an online bank account. It is common for most banks to have an authorization process in place to prevent frauds.

Some banks also have NEFT and RTGS processes enabled in online account access, through these it is possible to request an electronic fund transfer. If you do not have a bank account, you can still request a fund transfer by visiting your nearest bank branch and if you have an account, some banks have also provided functions to request an NEFT transaction through their ATM machines.

List of Full Form for words used in this article:

Full form of  RBI	Reserve Bank of India
Full form of  RTGS	Real Time Gross Settlement
Full form of  NEFT	National Electronic Fund Transfer
Full form of  IMPS	Immediate Payment System
Full form of DD	Demand Draft
Full form of NPCI	National Payments Corporation of India
Full form of IFSC	Indian Financial System Code
Full form of ATM	Automated Teller Machine

External links:

• Find IFSC of Banks' Branches on Reserve Bank of India's Website
• List of NEFT Enabled Bank Branches (with IFSC) on Reserve Bank of India's Website

Most Popular banks in India

(SBI) State Bank of India	Union Bank of India.	HDFC Bank Ltd.
Bank of Baroda	ICIC Bank Ltd	Indian Bank
Allahabad Bank	Bank of India	Axis Bank
Punjab National Bank	Central Bank of India	Canara Bank

Disclaimer
We have tried really hard to ensure that the information on this site is accurate. However, we cannot guarantee the accuracy of all information and we will accept no liability for any loss or damage incurred. We shall also not be liable for your use or inability to use the site or the information or services that it contains.

Please note that we are not in any way affiliated with the RBI who is responsible for issuing and managing IFSC and MICR codes, and you are advised to confirm each IFSC codes with your bank before initiating any transaction. We cannot be held responsible or liable for any loss or damage, as a result of incorrect or incomplete information derived from this post.

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