Important Codes used in Banking System

IFSC (Indian Financial System Code):

Indian Financial System Code is an alpha-numeric code that uniquely identifies a bank-branch participating in the NEFT system.

This is an 11 digit code with the first 4 alpha characters representing the bank, The 5th character is 0 (zero) and the last 6 characters representing the bank branch.

IFSC is used by the NEFT system to identify the originating / destination banks / branches and also to route the messages appropriately to the concerned banks / branches.

For ex: PNBN0014976 : i. First 4 character PNBN – refers to Punjab National Bank. ii. 0 is a control number. iii. last six characters (014976) represents the PNB branch kurshi Road, Lucknow.

MICR – Magnetic ink character Recognition :

MICR is 9 digit numeric code that uniquely identifies a bank branch participating in electronic clearing scheme. Used to identify the location of a bank branch. City (3) Bank (3) Branch (3) The MICR code is allotted to a bank branch is printed on the MICR band of cheques. MICR used for electronic credit system.

SWIFT Code :

Society for worldwide Interbank financial tele- communication.

India was 74th Nation to join SWIFT Network.

SWIFT Code is a standard format of bank Identifier code. This code is used particularly in International transfer of money between banks.

A majority of FOREX related message are sent to correspondent banks abroad through SWIFT.

SWIFT Code consist 8 or 11 character when code is 8 digit, It is referred to primary office 4 – bank code 2 – country code 2 – location code 3 – branch code (optional).