Upon opening a bank account, banks provide a banking welcome kit to the account holders. The banking kit includes a bank passbook, chequebook, debit card, and other banking credentials. All of these items are required to complete transactions and record them.
The cheque book is one of the most important documents in the bank welcome kit. A closer look at the cheque reveals that everything printed on it is significant and contains information about the bank. In this blog, we will look at the meaning of the IFSC, MICR code, and CIF number, as well as where to find them.
FSC stands for Indian Financial System Code. It is an 11-digit character that appears on a cheque leaf and other banking documents such as a passbook. The 11-digit character code aids in identifying various bank branches. To complete NEFT, IMPS, or RTGS transactions, an IFSC code must be entered. Some additional IFSC points are as follows:
Following are the features of an IFSC code:
Simple online fund transfer The IFSC code allows for the quick and easy transfer money between bank accounts. The use of an IFSC code is required in order to facilitate all electronic or online fund transfers via NEFT, RTGS, or IMPS.
Tracking transactions: The RBI uses the IFSC code to keep a regular record of all banking transactions, reducing the possibility of a discrepancy in the fund transfer process.
Identity verification: The IFSC code aids in identifying all banks and their corresponding branches, enabling clients to steer clear of potential errors.
Error elimination: The IFSC code allows users to securely transfer funds while reducing the possibility of fraudulent activity during the online fund transfer process.
Every detail on a passbook, chequebook or debit/credit card provides details about the bank and the account holder. The relevance of an IFSC code is highlighted by the following factors:
Bank branch identification: The code uniquely identifies a specific bank branch, assisting customers in avoiding potential errors during online fund transfers via NEFT, RTGS, or IMPS.
Fund transfer: In order to make a financial transfer, the customer does not need to go to the bank; instead, they can use the IFSC Code to make a money transfer online.
Processing transactions: The IFSC code can be used to process all online transactions, including bill payments.
Tracking activities: The RBI uses the code to track all online activities carried out by an individual, hence minimising the possibility of any discrepancy in the fund transfer procedure.
The IFSC code is an alphanumeric code composed of alphabets and numbers. The first four alphabets represent the bank's name, the fifth character is zero and the last four characters represent the branch code.
Here is what an IFSC code looks like-
PYTM is the Paytm Payments Bank bank code and its digital branch code is 123456.
There are two methods for obtaining the IFSC code: online and offline. The following are some simple methods for finding an IFSC code:
The IFSC code can be found on the top of the bank's cheque leaf.
Paytm Payments bank provides a Paytm savings bank account, which functions similarly to a bank's savings account. With a PPBL savings account, a user can perform a variety of transactions such as sending money to another bank account, creating fixed deposits at a very competitive interest rate, making payments online and offline, and much more. Logging into the Paytm app and then navigating to the account holder detail page will provide you with the PPBL IFSC code and other banking details.
To better understand how an IFSC code works, consider Samridhi Bank. Samridhi Bank's IFSC code in Lucknow is SAMR012345.
To complete a fund transfer to a payee, the payer must provide the account number as well as the bank's IFSC code. Once the remitter has submitted all of the required information, the money will be sent to the payee, eliminating any possibility of error.
The Reserve Bank of India tracks and monitors all banking transactions. The IFSC code, which is based on the location of the bank branch, assists the RBI in maintaining transactions made via RTGS, NEFT, and IMPS. As a result, an IFSC code is required for any bank account holder to initiate transactions unless the beneficiary/IFSC payee's code is provided along with the bank account number. Providing an IFSC code eliminates any possibility of an error during a money transfer from one bank to another.
IFSC code is a key when it comes to electronic forms of payment or payments that are being done through RTGS, NEFT, and IMPS.
|Meaning||Continuous and real-time fund transfer settlement on a transaction-by-transaction basis||A safe, dependable, and efficient system for transferring funds between banks||Transferring funds between banks in India in a secure and cost-effective manner|
|Transfer limit||Minimum- Rs. 2 Lakh|
Maximum- No limit
|Minimum- Rs. 1|
Maximum - No limit
Maximum - Rs. 2 Lakh
|Transaction timings||Anytime||Monday to Friday- 8:00 am to 6:30 pm|
Saturday- 8:00 am to 12:30 pm
MICR stands for Magnetic Ink Character Recognition. It is a 9-digit code which is used for the faster processing of the cheque. It is unique for every bank branch and helps in identifying the bank and the bank that participates in Electronic Clearing System (ECS). Similar to the IFSC code, the MICR code is also a combination of different characters and numbers. Here is what it looks like:
Following are the uses of a MICR code:
Account holders can find the MICR code on the bottom of the cheque leaf and on the bank passbook.
A CIF number is a Customer Information File number, it is an 11-digit unique number allotted to each bank account holder. It digitally stores all the banking information of the account holder. In addition, as it is unique, it remains the same even if the account holder has more than one account.
The bank can decode the CIF number to know information about an account holder regarding loans, Demat account and other identifying details like address, photo ID, etc.
Following are the ways to find a CIF number online and offline:
Account holders can find the CIF number through the bank's net banking website and banking mobile application
A CIF number can be obtained from a cheque leaf, passbook and can also be obtained through SMS.
The IFSC code can be found in an account holder's passbook, chequebook, or on the bank's website, among other places. It is an alphanumeric number that is required for all NEFT, RTGS, and IMPS transactions.