What important banking codes are found on each check issued by the banks in India

While most people understand the obvious parts of checks that need to be filled out when they are making purchases, paying for services, or paying bills. However, there are is also several pieces of information that they may not be aware of that are equally important to the bank. These things are found at the bottom of each and every check.

These special codes are there to signal the bank and their processing equipment to be able to quickly and efficiently process the fund transfers. There is also a special feature of these codes to make it easier for the equipment to read and process the checks. The codes are printed with a special ink called MICR or Magnetic Ink Character Recognition.

The key to being able to route the funds in and out of the bank and put the data in the right accounts is the use of unique codes. In the case of the India Banking System, there are three very important codes to know about; IFSC, MICR, and Check Number.

The IFSC code is a unique code that is assigned to each banking institution in India. This IFSC code is printed on each check near the top, just underneath the account holder’s name and address. The IFSC code is an 11 character code that can be alpha-numeric and is divided up into 3 sections. The first 4 characters represent the bank’s name, the 5th character position is a 0 and the last 6 characters represent the branch name. The IFSC code is used specifically for the transfer of funds using the RTGS, NEFT, or IMPS method.

The MICR Code is a unique 9 digit code that represents the bank name and specific branch. The 9 digit code is broken up into 3 different sections of 3 digits each. The first three digits are used to represent the city in which the bank is located, the second 3 digits are used to represent the bank code and the last 3 digits represent the branch code. The MICR code is part of the series of codes that are printed on the bottom of each check using a unique type of ink that is magnetic known as Magnetic Ink Character Recognition. It is printed using a laser-type printer and a special MICR toner cartridge.

Check Number

The Check Number is the first series and digits that are found at the bottom of each check. This 6 digit code is found to the left of the MICR code and it is unique to each check. This check number makes it easier for the user to be able to keep track of the money that is being spent throughout the month using a check register. The check number is also printed using the unique printing method as with the MICR code.

Question: Why is a MICR Code important?

Answer: The MICR Code serves two purposes, first it is 9-digit, unique code that identifies a bank and branch on each check. The magnetic properties of the ink that is used to print the codes make it work perfectly for the banking machines that process the checks after they have been deposited into the bank.

Question: How to find the IFSC code of any bank in India?

Answer: Nothing is more important when it comes to banking in India than knowing the IFSC code for the bank and branches that you are looking to do business with. This is especially true when you are looking to do any type of online banking in India. Fortunately, it is fairly easy for you to find the IFSC code for most banks in India. By going to the RBI (Reserve Bank of India) website and use the bank name and location to look up the IFSC code.

Question: Can we transfer money without an IFSC code?

Answer: If you are want to transfer funds within India using National Electronic Funds Transfer (NEFT) or Real Time Gross Settlement (RTGS) methods you must know the bank’s IFSC code in order to complete any transactions within India. To complete international fund transfers you must use a Society for Worldwide Interbank Financial Telecommunication (SWIFT code) outside of India.

Question: Why IFSC code is important?

Answer: Since the IFSC code is a unique bank and branch identifier it makes it very safe and secure for online Internet-based banking. The Indian people are able to make many types of transactions online using their bank’s IFSC code. Using the IFSC code allows the most secure form of communication between the person sending the funds and the person receiving the funds.

Question: What is the rule of the IFSC code in the Indian banking system?

Answer: The IFSC is a unique identifier for banks in India that participate in electronic funds transfers in India. These transfers have to do with payments and settlement systems in India which include NEFT, RTGS, and IMPS. The code is an 11 character code that consists of the bank’s name represented by the first four alphabetic letters, the 5th character is a 0 and the last 6 characters are numbers that represent the bank branch.

Question: Can I find the IFSC code with an account number?

Answer: The way the Indian Banking System is set up you would have a very difficult time discovering the bank’s IFSC code only when you have a bank account number. The IFSC code is unique to the specific branch and an account number only identifies a person as having an account with a certain bank.

Question: Why all of the bank codes printed across the very bottom of the checks?

Answer: All of the banks in India provide their customers with a preprinted check that has the unique bank codes already printed on them at the bottom of the check-in order to be read by the banking equipment. The special magnetic ink or MICR ink is designed to make it much easier to process that checks.