IFSC Code and MICR Code Explained

The full form of IFSC code is the Indian financial system code. It is an alphanumeric code i.e. it contains both numbers and alphabets.

With the help of this code, RBI is able to access complete information of every branch of any bank.

It is a unique 11 digit code issued by the RBI also known as, Reserve Bank of India, to every bank branch in India that takes part in the online transfer of funds through system applications like RTGS, NEFT, and IMPS.


  • RTGS (Real Time Gross Settlement),

It is a payment system in which the money is credited in the beneficiary’s account in real-time and on a gross basis.

It is helpful in transferring the funds and securities instantly. Payments made by RTGS are final and irrecoverable. In this, the settlement happens as soon as it is received.

  • NEFT (National Electronic Funds Transfer)

It is a payment system that facilitates one-to-one funds transfer over 24 hours.

Through this electronic fund transfer system any individual, firm, or corporate can transfer money online from a branch of any bank to an individual, firm, or corporate having an account in another branch of any bank.

It is reversible if the payment is not credited to the right account.

  • IMPS (Immediate Payment Service)

It is a real-time instant inter-bank funds transfer system that is overseen by the National payment corporation of India. IMPS is available 24/7 throughout the whole year.

It contains a considerable transfer limit. It is also available on bank-off days and holidays.

One can also make use of it through mobile which makes it more convenient for the users.

difference between ifsc code and micr code

Format of IFSC code, Where to find it

You can find the code in the checkbook that has been given to you by the bank. It is also on the front page of the account holders’ passbook.

A single bank has various branches set up at different places around the nation, so in order to identify them, this IFSC code is given to each branch.

No two branches have the same IFSC code. Bank IFSC Code is used by the NEFT & RTGS systems to route the messages to the destination banks/branches.

There is a format to the Code which goes as follows: the first 4 characters tell you the name of the bank, followed by the 5th character, which is always a 0, and is reserved for future use, then either the number or alphabet that informs you about the branch code make up the remaining 6 characters.

You will clearly find IFSC code on the top of your cheque in the order of the format mentioned above.

How to Find IFSC Code

Don’t worry, if you don’t have your check book, you can call up the helpline or visit the official website of that particular branch.

The official website of Reserve Bank of India (RBI) will also help you with finding the IFSC code. There are many other sites for checking your IFSC code, so make sure you surf the Internet to find yours.

Always cheque the IFSC code of the recipient’s Bank account to avoid wrong transfer of funds.  Many third-party web portals now allow the lookup of IFSC Codes online.

Customers can search for the IFS Code of their bank-branch with a single or a combination of criteria like bank name, state, district, city, branch, etc.

In which ways IFSC Code can be Used?

It can be used in the following two ways:

  • Electronic Funds Transfer – The system of transferring funds through the electronic terminal from one bank account to another bank account by mentioning receivers’ bank account number, branch name, and IFSC code.
  • Credit Card Bill Payments – This code is also useful in making various kinds of online bill payments.

What are the benefits of using the IFSC Code?

  • It is very helpful in transferring money instantly. In the case of an emergency, one can transfer money immediately rather than waiting in the long lines of the bank.
  • A user can get access to it anytime and anywhere with just his/her pc or mobile.
  • Payment of bills, recharging a phone or television, etc., can be easily done online without the requirement of actual cash.
  • This online transfer fund method helps to save the time and fuel of customers as they can do transactions without actually visiting the banks.
  • Since RBI provides a unique code to each branch of every bank, the transactions get more secured and trustworthy for the users.
  • It is an error-free transaction.
  • It is environment friendly too since paperless transactions take place.

What Happens if you Use Wrong IFSC Code

Wrong IFSC code can lead to the bank rejecting the transfer of funds if the details about the beneficiary’s bank account in the NEFT form application are inadequate or wrongly entered.

It will also lead to a waste of time as the money will not get transferred and you will have to wait for days to transfer it again.

So make sure you fill in the correct information and crosscheck everything for the smooth and timely transfer of funds.

It not only helps in identifying the branch but also secures your funds and makes the transfer process easier and smoother.

The RBI keeps check of all the online transfers happening and also creates the IFSC codes given to the banks.

Examples of Some Major Bank Codes:

Axis bank ifsc code starts with -UTI,

Indian bank ifsc code starts with- IDIB,

PNB bank ifsc code starts with- PNB,

ICICI bank ifsc code starts with- ICICI

State Bank of India ifsc code starts with – SBIN,

HDFC Bank ifsc code starts with – HDFC,

Bank of Baroda ifsc code starts with – BARB,

United Commercial Bank ifsc code starts with – UCBA,

Youth Enterprise Scheme Bank ifsc code starts with – YESB

and so on.  For example, a person with ICICI has to send money to someone from HDFC bank then the person using ICICI will fill in the beneficiary’s name, bank name, her/his bank account number, and the IFSC (Indian Financial System Code) of her/his bank branch.

You can also pay your bills and recharge your phone using IFSC code.

What is MICR, Where it is Located

How to find ifsc code and micr code from bank

MICR also is known as “Magnetic Ink Character Recognition” is magnetic ink bar codes printed on the bottom of the cheques that you have, next to the cheque number.

Or on the first page of the bank savings account passbook.

It is a numeric code i.e. made up of only numbers, containing 9 digits. All the banks have their own unique MICR Codes which indicates a lot about the things offered by the particular bank to the account holders.

There are two main fonts of MICR Code, E-13B and CMC-7. This E-13B MICR code font was adopted as the International Standard in ISO.

MICR Reader

In any of the two fonts, the MICR code is printed by using the magnetic ink or toner which contains iron oxide.

MICR Reader is a technology used to distinguish characters so that they can be read without any problem even if it is overprinted or covered by other marks. It is used with the purpose of high security.

A document is passed through the MICR Reader with the purpose of the magnetization of ink and the detection of the characters.

How was MICR Made and its Functions

The Reserve Bank of India in the early 1980s introduced this form for safe and effective payments across the nation. It is a cheque clearing system.

Before this, the cheques were manually processed using the Top Tab Key Method.

The usage of this method was very costly and time-consuming, so there was an ultimate need for an automatic process of clearance of cheques. Soon then MICR became popular and was adopted by everyone.

This happened because the machines were more efficient in reading the MICR codes and it could be printed easily using the technology.

MICR codes back then became a symbol of modernity.

MICR is a security bar code used to protect transactions and make funds transfers more easier and secure.

It is also an important part of online money transfers because without it’s your cheque will not get cleared.

Like IFSC every bank branch is given a unique MICR code which helps the RBI to identify the bank and facilitate cheque clearance.

Security and Identification

MICR allows banks to scan and store the information directly into a data-collection device. MICR characters are easily identified and readable by humans.

Documents that are encoded with MICR codes are processed and cleared off much faster and more accurately than other documents encoded with other commonly used security codes.

MICR Format

The MICR code comprises of 9 digits with the first three digits being the city code, the city in which the bank branch is located, followed by the next three digits that represent the bank code and the last three digits being the bank branch code.

For example, MICR code of SBI bank in Delhi is 110002092 wherein:

110 the first three digits representing the city code for Delhi;

002, the next three digits representing the bank code for SBI;

And 092, the last three digits representing the bank branch code for Nirman Bhavan, New Delhi

The RBI website has MICR codes of different banks and their respective branches. You can check yours too. There are many third-party sites too that allow checking of MICR codes.

Examples of some MICR Codes of Different Banks:

  • MICR code of Punjab National Bank, Badhola branch is – 000024000,
  • MICR code of Industrial Credit and Investment Corporation of India, Noida is – 110229281,
  • MICR code of Youth Enterprise Scheme Bank, Jammu and Kashmir is – 180532002,
  • MICR code of United Commercial Bank, Chetput branch, Chennai is – 600028004,
  • MICR code of Housing Development Finance Corporation, Imphal, Manipur is – 795240004,
  • MICR code of Axis Bank, Bhadrak district, Orissa is – 756211502,
  • MICR code of Bank of Baroda, New Delhi is – 110012046,
  • MICR Code of Kotak Mahindra Bank, Mumbai is – 400485010.

Advantages of MICR Code

  • Reshaping of the document is not possible.
  • All the work is done by machines without any human interference, so the chances of errors are less.
  • The printed characters cannot be altered, so it provides greater security due to which chances of fraud are reduced.
  • It consumes less time.
  • The special ink used in printing enables the reader to read the code even if overwriting is done on it.

Disadvantages of MICR Code

  • It is unable to recognize the alphabet only some special characters it can read.
  • MICR is a costly method of data entry.
  • It is only capable of reading 10 digits and 4 special characters.

Uses of MICR Code

People are required to fill the MICR code while filling up various financial transaction forms such as investment firms, SIP forms, or for transferring funds.

The wrong MICR will also make you lose your money and time. Your cheque will be held back or it might also get transferred to the wrong person.

In such a situation you will lose your money and even the duration of payment to the right person will also get ended.

In the case of any business, this will also lead to the downfall of the creditworthiness of your firm or corporate organization.

It is very important for an account holder to type the correct MICR code to avoid such losses and difficulties.

If timely information of such an incident is made provided to the bank, the money in some cases will be refunded back to the user’s account.

The user has to pay then the service charge of this transaction to the bank.

In today’s world where technology is so great and advanced, the use of IFSC is more prevalent and convenient.

Although MICR still exists and is important today too the process of online transfer of funds has made IFSC the priority choice. Just make sure to check both IFSC and MICR for safe, secure, and easier funds.

Top 10 Banks Indian Banks

  • HDFC Bank

Housing Development Finance Corporation Bank is a private bank established in the year 1994. Its headquarters are situated in Mumbai. Around 5,314 branches are currently present of this bank all over the country. HDFC offers a savings account, personal loan, car loan, credit cards, forex cards, etc.You can easily find ifsc code of HDFC Bank from here.

  • SBI Bank

It is a public bank founded in the year 1806 having its headquarters in Mumbai. It is serving its customers worldwide for many years and has a wider reach among Indian households. There are around 18000+ branches of this bank in India. It is a government-owned bank. It offers a wide range of services like investment banking, finance, and insurance, credit cards, mortgage loans, savings, securities, home loans, car loans, etc.You can easily find ifsc code of SBI from here.

  • ICICI Bank

This private bank having its headquarters in Mumbai was founded in the year 1994. ICIC Bank is spread over in 18 countries. Services provided by this bank are consumer banking, corporate banking, credit cards, wealth management personal loans, etc. It also provides online investments. It collaborated with Amazon Pay in the year 2018.You can easily find ICICI Bank ifsc code from here.

  • Axis Bank

It is a private bank founded in the year 1993. It has more than 13,000 ATM’s and 3000 branches in India. Main services and products offered by this bank are savings account, credit cards, personal loans. These services can be accessed online too.You can easily find Axis ifsc code from here.

  • Kotak Mahindra Bank

Founded in the year 2003, this private bank has its headquarters located in Mumbai. It has 1500 branches and 2325 ATM’s with 40,000+ employees. It offers a number of services like life insurance, mutual funds, institutional equities, Kotak realty fund, Kotak private equity, etc.You can easily find Kotak Mahindra Bank ifsc code from here.

  • YES Bank

Currently, with around 1,000 branches and 20,000+ employees, Youth Enterprise Scheme Bank was established in the year 2004. It has its headquarters in Mumbai. It offers products like investment banking solutions, YES property purchase credit card, YES first corporate credit card, debt capital markets, digital banking, etc.You can easily find YES Bank ifsc code from here.

  • PNB

Punjab National Bank is a government-owned bank established in the year 1895 having its headquarters in New Delhi. It made a prominent contribution to the digital India initiative. This bank offers mobile banking, internet banking, SMS banking, etc.You can easily find PNB bank ifsc code from here.

  • Bank of Baroda

It is also a government-owned bank founded in the year 1908. It has its headquarters in Vadodara. It has around 9500+ branches and 2,130 ATM in the country and abroad. It offers services like consumer banking, corporate banking, insurance, and investment banking, etc.You can easily find bank of baroda ifsc code from here.

  • Bank of India

Bank of India was established in the year 1907. It is a public sector bank having its headquarters in Mumbai.

It has 5,100 branches with around 48,807+ employees working hard to provide the best services to its customers like commercial banking, retail banking, personal banking, asset management, mortgages, etc.You can easily find Bank Of India ifsc code from here.

  • IDBI Bank

Industrial Development Bank of India was founded in the year 1964 as a special act of parliament. It is a government-owned bank headquartered in Mumbai. It is making a major contribution to increasing the number of online transactions under the Digital India Campaign. It can be a good choice for private banking, agriculture loans, corporate banking, finance and investment, mortgage loans, etc.You can easily find IDBI Bank ifsc code from here.

Frequently Asked Questions

  1. Explain the RTGS code.
  • Sometimes for RTGS transactions, people use the word RTGS Codes instead of the IFSC Code. Both are the same.
  1. Are IFSC and Branch code one and the same thing?
  • They are not the same. IFSC is used to identify the bank, while branch code is already included in the IFSC code.
  1. How does a bank branch code help us?
  • Branch code helps us in identifying the bank branch and differentiate between one branch and another. The last 6 characters in IFSC is the branch code.
  1. What are the forms of electronic fund transfer?
  1. Who all can use NEFT?
  • Any individuals having an account with a bank branch can transfer/receive funds using NEFT.
  1. Charges for NEFT
  • Transactions up to Rs 10,000: maximum Rs 2.50 + Service Tax.
  • Transactions above Rs 10,000 and up to Rs 1 lakh: maximum Rs 5 + Service Tax.
  • Transactions above Rs 1 lakh and up to Rs 2 lakhs: maximum Rs 15 + Service Tax.
  • Transactions above Rs 2 lakhs: maximum Rs 25 + Service Tax.
  1. Is there any limit on the NEFT funds transfer amount?
  • No, RBI has not stated any limit to NEFT transfer. Banks might, however, place limits for safety concerns
  1. How much longer does a beneficiary have to wait for receiving funds?
  • Maximum 2 hours.
  1. Can I check the status of NEFT transactions?
  • Yes, you can track the status of NEFT transactions by contacting the NEFT Customer Facilitation Centre (CFC) of their bank, respectively. Details of NEFT CFC of banks are available on the websites of the bank you are looking for.
  1. Can IFSC codes for two bank branches be similar?
  • No, every branch has been issued a different IFSC code, for easier identification.

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