Question 1

What is IFSC?

Accepted Answer

IFSC stands for Indian Financial System Code. It is a 11-digit alpha-numeric code that uniquely identifies a bank branch participating in any RBI regulated funds transfer system. The IFSC code helps to transfer money using RTGS, NEFT or IMPS method.
The first 4 digits of the IFSC represent the bank and last 6 characters represent the branch. The 5th character is zero.

Question 2

How does IFSC Code work?

Accepted Answer

Let us take an example of the Canara Bank IFSC code to better understand what IFSC code is and how it works in banking transactions. The IFSC code for the Chandigarh Branch of Canara Bank is CNRB00001995.

Here, CNBR represents the name of the bank, which is Canara Bank

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

The other 6 characters, 01995, specifically helps the RBI identify a bank branch without any error.

Now, let us understand how IFSC works. When a fund transfer is initiated to a particular payee, one has to provide the account number and branch-specific IFSC code. Once the remitter provides these details, the money is sent to the account holder and IFSC helps avoid any errors in such transactions.

Apart from fund transfers, IFSC code can also be used to purchase insurance and mutual funds through net banking. The Reserve Bank of India's (RBI) National Clearing Cell monitors all transactions and the IFSC code helps the RBI keep track of transactions and also execute fund transfers without any error.

The IFSC code can also be found on your cheque book or bank passbook. One can also find their bank branch IFSC code in the monthly account statement. The IFSC code for each bank and branch is unique.

Question 3

Why is IFSC Code important?

Accepted Answer

We need an IFSC code because it helps the RBI monitor all banking transactions without any blunders. A simple IFSC code can aid the RBI track, oversee, and seamlessly maintain all financial transactions that are carried out via NEFT, RTGS and IMPS.

For bank customers, IFSC code is important because most electronic fund transfers cannot be initiated unless the IFSC code of the beneficiary/payee is provided along with the bank account number.

IFSC code plays an important role when money is transferred from one account to another through methods such as IMPS, NEFT and RTGS. All these options are fundamentally concerned with inter-bank money transfer but perform this task in different ways. The common thread amongst these varied options is the bank IFSC codes system.

Question 4

Are IFSC Code and SWIFT Code the same?

Accepted Answer

No, the IFSC and SWIFT codes are not the same. IFSC is used for transferring funds within India, while SWIFT code is used for transferring funds at an international level. Moreover, SWIFT is a bank identifier code while IFSC is used to identify a specific bank branch.

Question 5

If a bank branch is changed, will the IFSC code change?

Accepted Answer

No, if the location of a bank's branch is changed, then the IFSC code will not change. If the bank account is shifted from one branch of the bank to another, only then will the IFSC code be changed.

Question 6

Is IFSC code same as branch code?

Accepted Answer

No, IFSC code is not the same as branch code.

Question 7

What is MICR?

Accepted Answer

MICR is an acronym for Magnetic Ink Character Recognition which is a technology used in the banking industry in printing the MICR codes.

A MICR code is a 9-digit code that uniquely identifies a bank and a branch participating in an Electronic Clearing System (ECS). The first 3 digit of the code represents the city code, the middle ones represent the bank code and last 3 represents the branch code. One can locate the MICR code at the bottom of a cheque leaf, next to the cheque number. It is also normally printed on the first page of a bank savings account passbook.

Question 8

What is the use of MICR Code?

Accepted Answer

MICR Code is used in the processing of cheques by machines. This code enables faster processing of cheques. One is required to mention the MICR code while filing up various financial transaction forms such as s investment forms or SIP form or forms for transfer of funds etc.

Question 9

What is cheque number?

Accepted Answer

A cheque number is a 6-digit number uniquely assigned to each cheque leaf. It is written on the left-hand side at the bottom of the cheque. It is advisable to check i.e. count and check the number on each cheque leaf in a new cheque book when you receive it from the bank. This is to ensure that no cheque is missing from the cheque book.
Ideally, you should record the transaction you have used each cheque leaf for in the transaction record slip attached at the start or end of a cheque book. In this record, you should mention the cheque number, date of cheque, amount and payee.

Question 10

Where is the MICR number on a cheque?

Accepted Answer

A MICR number on the cheque is written at the bottom of the cheque, on the right-hand side of the cheque number.

IFSC Code	IBKL0001355
MICR Code
Bank	IDBI BANK
Address	SHANKCHURA BAZAR,SHANKCHURA,PIN 743429
District	BASIRHAT
State	WEST BENGAL
Branch	SHANKCHURA
Phone	8927589272

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