Significance of IFSC Code for Banks and General Public For banks carrying out fund transfer electronically IFSC code is made use of to send or route messages properly to the particular branches of any specific bank. Also, the code is utilized by the fund transfer systems to recognize the origination and destination bank branches. So, the appropriate functioning of NEFT and RTGS is extensively dependent on IFSC code. For the general public also fund transfers are facilitated and account of the fund recipient is credited only when IFSC details of the receiving bank branch are provided by the customer.
What is IFSC Code?
Indian Financial System Code (IFSC). It is used for electronic payment applications like Real Time Gross Settlement (RTGS), National Electronic Funds Transfer (NEFT), Immediate Payment Service, an interbank electronic instant mobile money transfer service (IMPS), and Centralised Funds Management System (CFMS) developed byReserve Bank of India (RBI). IFSC Code has eleven characters "Alpha Numeric" in nature. First four characters represent bank, fifth character is default "0" left for future use and last six characters represent branch.
What is MICR Code?
MICR Code is known as Magnetic Ink Character Recognition as printed on cheque book to facilitate the processing of cheques.