The evolution of online banking has made it possible to send and receive funds in an instant from just about anywhere in the globe. While it is all so convenient to transfer funds or get an outstation cheque being cleared within one working day, there are technological marvels including Indian Financial System Code and Magnetic Ink Character Recognition Code at play. IFSC code as the name suggests is a financial system code designed by the Reserve Bank of India to recognize each bank branch. Since each branch gets assigned a unique IFSC code, it makes it easier to transfer funds online instantly. MICR codes on the other hand are important for cheque clearance mechanism. MICR code is printed on the cheque leaf of the bank read only by cheque clearance housing making it possible to clear both domestic and outstation cheques instantly.
Overview of IFSC Code:
Indian Financial System Codes or IFSC codes are a combination of 11 special characters. IFSC codes define the bank and its corresponding bank branch and helps in facilitating online banking transactions including NEFT and RTGS transactions. IFSC code comprises of 11 special characters. The first 4 corresponding to the bank name while the last six correspond to the bank branch. The fifth character from the front is always zero and reserved for future use as per RBI guidelines.
Canara Bank IFSC Code:
Let us consider the IFSC code for Canara Bank located on the western express highway in Goregaon East in Mumbai.
Overview of MICR Code:
MICR Code, also known as Magnetic Ink Character Recognition Code are a specially designed coded characters used in cheque processing. MICR codes are listed at the bottom of every cheque leaf and are printed using a special character ink. This special ink makes MICR codes tamper proof and can be easily accessed by cheque clearing houses allowing smooth and easy cheque clearance mechanism. The first three digits in the MICR code represent the city codes which are usually same as the pin code of the city. The next three characters represent the bank code and the last three are reserved for the concerned bank branch.
Canara Bank MICR Code:
Let us consider the MICR code for Canara Bank located in Hill Road in Bandra West in Mumbai.
Overview of IFSC Code:
Indian Financial System Codes or IFSC codes are a combination of 11 special characters. IFSC codes define the bank and its corresponding bank branch and helps in facilitating online banking transactions including NEFT and RTGS transactions. IFSC code comprises of 11 special characters. The first 4 corresponding to the bank name while the last six correspond to the bank branch. The fifth character from the front is always zero and reserved for future use as per RBI guidelines.
Canara Bank IFSC Code:
Let us consider the IFSC code for Canara Bank located on the western express highway in Goregaon East in Mumbai.
- The IFSC code for the bank is CNRB0008056.
- First 4 characters are CNRB representing the name of the bank which is Canara Bank in this case.
- The last six characters are 008056 which correspond to the Goregoan (East) branch of Canara Bank in Mumbai.
- The fifth character from the front is o and reserved for future use.
Overview of MICR Code:
MICR Code, also known as Magnetic Ink Character Recognition Code are a specially designed coded characters used in cheque processing. MICR codes are listed at the bottom of every cheque leaf and are printed using a special character ink. This special ink makes MICR codes tamper proof and can be easily accessed by cheque clearing houses allowing smooth and easy cheque clearance mechanism. The first three digits in the MICR code represent the city codes which are usually same as the pin code of the city. The next three characters represent the bank code and the last three are reserved for the concerned bank branch.
Canara Bank MICR Code:
Let us consider the MICR code for Canara Bank located in Hill Road in Bandra West in Mumbai.
- The MICR code for the bank is 400015006.
- First 3 characters are 400 corresponding to the pin code of Bandra West which is 400050.
- The next three characters are 015 which correspond to the Bandra West branch of Canara Bank in Mumbai.
- The last three characters are 006 corresponding to the concerned bank branch.