Exploring BSR Code: Usage, Classification and Benefits

To gather information and monitor the performance and operations of the banking sector in the society, the RBI, in December 1972 introduced a standardized numerical system named Basic Statistical Return (BSR) Code. Every bank registered with RBI has their unique code.

What is BSR code?

BSR code refers to a 7 digit unique code allotted to each bank registered with the RBI. This code is broadly divided into 2 segments. The first 3 digits of the code represents the bank and the remaining 4 represents the specific branch of a bank. This code is used in filing the TDS/ TCS returns. You can find your code on TDS certificate and tax challans usually.

Usage of BSR code

BSR code is primarily used for 4 major reasons:

• Filling the TDS/ TCS returns: BSR code is required to fill the TDC (Tax deducted at Source) and TCS (Tax collected at source) returns.
• Tracking payments: As per the Tax Department, to track your challan details and tax transactions, BSR code is necessary.
• Pension withdrawal: Anyone availing pension facility, needs a BSR code along with their bank number to withdraw the pension amount.
• Enables foreign transactions: While enabling any foreign transaction from India, banks mandatorily asks for a BSR code.

Classification of BSR code

Based on the statistical reporting system, the BSR code is classified into 7 main categories.

• BSR 1: On the last Friday of June and December, half-yearly returns advances from all the branches. This is further divided into two, 1st part is for the accounts that exceed the limit of RS. 10,000 and 2nd part for the accounts that have limit less than Rs. 10,000.
• BSR 2: It is applicable to all the half-yearly returns on the last Friday of June and December.
• BSR 3: To return the monthly Return Advances against the Security of Selected Sensitive Commodities from Head Offices on last Friday of every month.
• BSR 4: Once in every two months, the return on ownership for bank deposits from all the branches on the last Friday of March.
• BSR 5: Applicable on the annual return on Bank Investments from the Head Office on the last day of March.
• BSR 6: This is applicable for the Quinquennial Survey on Debits to Deposits Accounts from April to March.
• BSR 7: Quarterly Survey on Aggregate Deposits and Gross Bank Credit by Head Offices on the last Friday of June, September, and December, and on March 31.

Benefits of BSR code

• User experience: BSR code has subsequently enhanced the user experience by providing a seamless and easy-to-go tax payment experience.
• Data management: Introduction oF BSR code made it easier for the RBI to track and monitor the operations of all the branches of every registered bank. This saves time and improves analytical efficiency.

BSR codes for banks