IFSC and MICR Codes Directory

The Format for Bank IFSC Code

When you look at an IFSC code, the first 4 characters represent the bank. These are generally the characters of the bank itself. For example, the IFSC code of PNB starts with ‘PUNB’ which is the first three letters of the bank’s full name(Punjab National Bank). Similarly, the IFSC code of HDFC starts with ‘HDFC’.

The fifth character is 0(zero) and is reserved for future use.

The last six characters of the code represent the respective branch. They are generally numbers but sometimes can also include alphabets depending on the bank.

Let’s now take an example of a specific IFSC to easily understand the format of an IFSC code. The IFSC code of Federal bank of Kochi branch is FDRL0001033. As per the format given above, the following is what we can make of it.

In here, FDRL represents the bank name, i.e Federal Bank.

The 5th character is 0, which is for future use

The other 6 characters, 001033 represents the branch of the respective bank, which is Kochi branch in here

How Does IFSC Code Work?

By now, you know that IFSC code is required for any kind of electronic fund transfer. When a fund transfer is initiated to a particular payee, the IFSC code helps in avoiding any errors that could happen otherwise. In other words, once the remitter enters all the details and IFSC code, money is sent directly to the correct bank account with the help of IFSC code.

The Reserve Bank of India’s National Clearing Cell monitors all financial transaction between the banks; IFSC codes help them track the transactions and execute fund transfer without any errors.

Moreover, IFSC code can be used to purchase mutual funds and insurance through net banking.

Why Do We Need IFSC Code?

As mentioned, IFSC code can be found in the chequebook and on the front page of the passbook. The account holder can also look for the code in the monthly account statement. Which is why IFSC code plays an important role in financial transactions and why it is unique.

Here are a few reasons why we need IFSC code when making financial transactions:

• IFSC codes help in preventing any kind of blunders that could happen. It ensures the fund transfer is carried out in the right bank.
• It helps RBI monitor all transactions with ease. In a case where any transaction needs to be tracked, it can be done via the help of the IFSC code.
• An account holder can search a bank by IFSC code. In fact, the person can get all details of the respective bank via the code.
• An electronic fund transfer requires IFSC code to complete the transaction.

How to transfer money with IFSC code of the bank?

Nowadays, most of the people are opting for an online process to transfer fund as it is easy and hassle-free. Moreover, it saves your time of going to the bank and standing in the queue. Follow these simple steps to transfer money using IFSC code.

• Step-1: First and foremost, get yourself registered for net banking facility. You can just write an application to the bank to get the credentials to register your account.
• Step-2: Register the recipient as a beneficiary for any third-party transactions.
• Step-3: Add the beneficiary details including the full name, bank account number and IFSC code; then select the mode of online payment and click submit.
• Step-4: In order to have secure transactions, you will receive a one-time-password to validate your identity. Enter the same and your transaction is completed.
• Step-5: The fund will be transferred to the recipient’s account depending on the mode of online payment.

What is MICR Code?

The Magnetic Ink Character Recognition, also known as the MICR Code, is the magnetic inks code printed on the bottom of your bank's cheque leaves. When in 1980s, Reserve Bank of India introduced many new modes for safe and effective payments across the country, the MICR was one of them.

The MICR code helps keep your transactions safe and protected. Additionally, it is an important part of the online money transfers. Every bank branch has a unique MICR code and this helps the RBI to identify the bank branch and process the transactions faster.

Where can you find MICR code?

The MICR Code is generally found on the bottom half of the bank’s cheque leaf. The code is written in a thin strip at the bottom of the cheque, right next to the cheque number. Additionally, the MICR Code of your bank branch can also be searched online, or inquired at the bank.

How is MICR Code different from IFSC?

In short, the IFSC code is used to initiate electronic money transfer between banks within India. The MICR code, on the other hand, is Magnetic Ink Recognition technology for making cheque processing faster and easier. Additionally, the IFSC code is an 11 character alphanumeric code, whereas the MICR is a 9 digit numeric code.

What is the use of MICR code?

The MICR is a character recognition technology to help in faster processing of the cheques. Since every bank branch is given a unique MICR code, it helps identify the bank branch and speed up the cheque clearing process. This way all cheques can be cleared faster and everyone receives their money in time.

Modes of online transfer using IFSC Code

With the advancement in digitization, everything now has become dependant on the online world. Moreover, this online trend has opened the world for online payment modes. We all agree that online transfer of funds has eased our lives. Nowadays, every other bank is providing Immediate Payment Service(IMPS), NEFT(National Electronic Funds Transfer), and RTGS(Real Time Gross Settlement), and more.

The different parameters such as service availability and flexibility, the speed of transfer, transaction value, etc. also depend on determining the mode of online transfer. These payment methods have their own set of benefits and limitations.

National Electronic Fund Transfer(NEFT)

• National Electronic Fund Transfer(NEFT)
• At present, there are 12 payment sets between the time period of 8 am to 7 pm for weekdays(Mon-Fri) and 6 payment sets between 8 am to 1 pm on Saturdays.
• Generally, there is no cap that has been set on the amount that can be transferred via NEFT; however, there are few banks who are an exception. For instance, SBI has put a cap of ₹10 lakhs for NEFT transfer amount.
• There is a cost between ₹2.5-₹25(+service tax), depending on the amount that is transferred.
• Also, you cannot transfer funds at any time of the day. The service is available only on working days and within the working hours of the bank. It is not available on weekends and bank holidays.

What are the bank charges for NEFT?

The bank charges for NEFT are very minimal. These can be as follows:

Real Time Gross Settlement(RTGS)

• RTGS is an online payment method that is meant for high-value funds transactions. The minimum amount that can be transferred via RTGS is ₹2 lakhs. As the transfer for the same is done on a real-time basis, the beneficiary will receive the amount approximately in 30 minutes.
• RTGS works from a time slab of 9am-4:30om on weekdays and 9am-2pm on Saturdays.
• The process to transfer fund via RTGS is similar to NEFT. All you need is the beneficiary’s account number, bank account number, and IFSC code.
• The cost to carry an RTGS transfer is expensive when compared with other payment methods. A transfer of ₹2 lakhs-₹5 lakhs could cost you up to ₹30 and any amount above ₹5 lakhs can cost you up to ₹55.

What are the bank charges for RTGS?

The bank charges for RTGS are minimal. They are as follows:

Immediate Payment Service(IMPS)

• As the name suggests, IMPS is an instant fund service and works all throughout the day. It can be used 24*7 to transfer funds to any other bank account.
• There is no process to register for IMPS. Once you’re logged into your net banking, you can access any of the online payment modes(IMPS, NEFT, RTGS). You can then select IMPS to be your mode of payment.
• In IMPS transactions, you need the beneficiary’s full name, his/her bank account number. In case you are transferring through the app, you will also need MMID(Mobile Money Identifier) code for IMPS.
• The charges for using IMPS depends from bank to bank. However, the general charges for fund transfer via IMPS for amount up to ₹1 lakh is ₹5 and for a transfer between ₹1-2 lakhs is ₹15.

What are the bank charges for IMPS?

The banks charge a minimal fee for the facilitation of IMPS transactions. These charges are as follows:

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