Friends,
The technology is growing very fast in India. The Banks situated in India are also growing very fast in this field. The facilities like as MICR Code, IFSC Code are increasing day by day which are used for RTGS, NEFT and NECS services by banks. But sometime the user does not know about the MICR Code or IFSC Code of the Branch in which he has the account. For this, the Reserve Bank of India has made it compulsory for all Banks to print MICR Code and IFSC Code on Passbook/Statement of Account. The circular regarding this is as under :-
RBI/2011-12/516
DPSS (CO) RTGS No. 1934/04.04.002/2011-12
April 20, 2012
The Chairman and Managing Director /
Chief Executive Officer of all banks participating in RTGS, NEFT and NECS
Dear Sir/Madam,
Printing of MICR Code and IFSC Code on Passbook/Statement of Account
As you are aware, the MICR code is necessary for all Electronic Clearing Service (ECS – Credit and Debit) transactions. Similarly, the IFSC code is a pre-requisite for NEFT and RTGS transactions.
2. Currently, the MICR code is available on the cheque leaf along with the IFSC code of the branch. On a review it has been decided that this information should also be made available in the passbook / statement of account of the account holders.
3. Banks are accordingly advised to take necessary steps to provide this information as indicated above in all passbook / statement of account to their account holders.
4. Please acknowledge receipt and furnish an action taken report within 15 days of receipt of the circular.
Yours faithfully,
Chief General Manager
(Vijay Chugh)
WHAT IS MICR CODE : MAGNETIC INK CHARACTER RECOGNITION (MICR)
In MICR technology the information is printed on the instrument with a special type of ink which is made up of magnetic material. On insertion of the instrument in the machine, the printed information is read by the machine. MICR system is beneficial as it minimizes chances of error, clearing of cheques becomes easy and transfer of funds becomes faster in order to facilitate operations.
MICR code consist of 9 digit
First three digit (1-3) denotes city and are same/identical first three digit of your pin code
for example first three digit of Pin code of New Delhi =110 so first three digit of MICR code of all the bank branches located in New Delhi must be 110.
4-6 digit denotes for Bank
each bank has given a three digit code,4-6 digit is= bank code eg. SBI code is "002"so 4-6 digit of MICR code all the the branches of SBI is "002" irrespective of location in the India.
(7-9) Last three digit denotes branch code,it is in serial wise ,means if Delhi has only one branch of SBI and its MICR code will be
110 (FOR CITY)
002 (FOR BANK)
001 (FOR BRANCH)
"110002001"
so if you are located in Delhi and your client has given you a MICR Code of the bank located in New Delhi , doesn't begin with "110",you can easily tell him your MICR Code is wrong.
What is IFSC Code
What is IFSC Code
IFSC Code is Indian Financial System Code, which is an eleven character code assigned by RBI to identify every bank branches uniquely, that are participating in NEFT system in India. This code is used by electronic payment system applications such as RTGS, ,National Electronic Fund Transfer and CFMS.
The code is of 11 characters. The first part is the first 4 alphabet characters representing the Bank. Next character is 0(zero), this is reserved for future use. The branch code is the last six characters. To know what is IFSC Code deeply, go through the article fully. Otherwise, if you need IFSC Code of any branch, just follow the instructions below.
How to find IFSC code?
Normally, this 11 digit code will be printed on cheque book for NEFT enabled banks. Also, you can find bank IFSC code, bank details, branch address for all banks in India by following link. By using 4 steps you can easily find this code and branch location.
