Understanding ISFC Codes:
Indian Financial System code or IFSC codes are a series of eleven character special codes designed and regulated by the Reserve Bank of India, IFSC codes are used to identify the bank branch used in either initiating of funds or a possible recipient of any online transfers. Since each bank has its own dedicated IFSC code, it helps automated systems to recognize various bank branches and route the funds to the designated bank branch in quick time. All online funds transfer, online banking, third party transfers, net banking, online purchased and NEFT, RTGS transactions are made possible only because of IFSC code system.
- IFSC code compromises of eleven characters including numbers and alphabets.
- The first four characters are always alphabetical and correspond to the name of the bank.
- The fifth character is reserved for future use and is numeric zero as per RBI guidelines.
- The last six characters can be either numeric or alphabetical or a combination of two and correspond to the exact bank branch.
HDFC Bank IFSC Codes:
Let us take an example of HDFC Bank located in Ashok Nagar in Chennai.
- The IFSC code of HDFC Ashok Nagar Branch is HDFC0000136.
- The first four characters of the code are HDFC correspond to the bank's name i.e. HDFC Bank.
- The fifth character is numeric zero as per the RBI guidelines and reserved for future use.
- The last six characters are 000136 which correspond to the No.53, Plot No 8414th Avenue of Ashok Nagar branch of HDFC Bank in Chennai.
Likewise let us consider the IFSC code for HDFC located in Ayanavaram area o Chennai, Tamil Nadu.
- The IFSC code for the bank is HDFC0001865.
- First 4 characters are HDFC representing the name of the bank HDFC.
- The last six characters are 001865 which corresponds to the Ayanavaram are branch of HDFC Bank in Chennai.
- The fifth character like in all IFSC codes is 0.
Understanding MICR Code:
MICR code also known as the magnetic ink character recognition code is primarily responsible in ensuring quick clearance of all domestic and outstation cheques. MICR code is a 9 character special code printed on each cheque leaf using a special ink. The code is visible only to the cheque reader at the clearance house. Being invisible to the naked eye, MICR code is virtually tamper proof adding a security layer for each financial transaction conducted through cheque cleaning mechanism.
HDFC Bank MICR Codes:
Let us take an example of HDFC Bank located in Ashok Nagar in Chennai.
- The MICR code of HDFC Ashok Nagar Branch is 600240010.
- The first three digits correspond to the city codes which are usually same as the pin code of the city.
- The first three characters of the code are 600 corresponding to the pin code of Ashok Nagar area of Chennai which is 600 083.
- The next three characters represent the bank code and the last three are reserved for the concerned bank branch.