What IFSC Code (Indian Financial System Code) ?

IFSC Code (Indian Financial System Code) is an 11-digit alphanumeric code for fund transfers with various modes like NEFT, RTGS, and IMPS. Reserve Bank of India (RBI) allocates IFSC CODE of all banks in India. Each code is a unique one and assists in the identity of a specific bank branch.

The "first 4 digits of the IFSC code represent the bank's name", while the "5th digit is 'zero' (0), which is preserved for future use". The "last 6 digits indicate the name of the specific bank branch."

As an example, the SBI IFSC code of the SBI bank branch in Ashok Nagar is SBIN0001857.

IFSC code is compulsory for fund transfers received through net banking. To know the IFSC code of a selective bank branch, you can see it up online. That 11-digit code is also printed on the cheque leaf issued by the concerned home bank branch.

What is MICR (Magnetic Ink Character Recognition) ?

The full form of MICR is Magnetic Ink Character Recognition technology. The primary need for this innovation is to authenticate the originality and legality of paper-based documents in the banking system and is majorly used on cheques. In terms of their real-world importance, MICR stands on par with IFSC where the transfer of funds using NEFT or IMPS is concerned.

MICR code imbibes the cutting-edge character recognition technology that is used by banks to authenticate the clearance of cheques and other such documents. MICR code itself can be seen placed on the bottom strip of the cheque and includes such details as the bank code, account details, cheque number, and amount, alongside a control indicator. The principal advantage of this system is that unlike similar concepts like barcodes, MICR can be easily distinguished and read by humans.

SWIFT codes (The Society for Worldwide Interbank Financial Telecommunication) BIC Code (Bank Identifier Codes) are a combination of several letters and are used to identify the banks' branch codes. SWIFT  codes are used as Bank Identifier Codes (BIC). A SWIFT code is used to recognize a particular branch of a bank. A SWIFT code also is used by various banks to transfer other messages.