What is IFSC Code and MICR Code And SWIFT Code AND BSR Code?

What is Bank IFSC CODE?

The Indian Financial System Code (IFSC) is an alphanumeric code that uniquely identifies a Bank-Branch participating in the two main Electronic Funds Settlement Systems in India: the Real Time Gross Settlement (RTGS) and the National Electronic Funds Transfer (NEFT) systems. IFSC is used by the NEFT & RTGS systems to route the messages to the destination banks / branches. Bank wise list of IFSCs is available with all the bank-branches participating in interbank Electronic Funds Transfer. List of bank-branches participating in NEFT/RTGS and their IFSCs is available on the website of RBI.

·       IFSC Code consists of 11 Characters: Example VIJB0001573

·       First 4 characters represent the entity (VIJB#######)

·       Fifth position has been defaulted with a '0' (Zero) for future use (####0######)

·       Last 6 character denotes the Sindagi branch identity (#####001573)

WHAT IS MICR CODE?

MICR (Magnetic Ink Character Recognition), as name suggest it is a character recognition technology which helps in faster processing of cheques. Every bank branch is given a unique MICR code and this helps the RBI to identify the bank branch and speed up the cheque clearing process.

IFSC code is developed to initiate electronic money transfer between banks within India; MICR is a Magnetic Ink Recognition technology for making cheque processing faster and simpler. IFSC code is alphanumeric 11 digits unique code, whereas MICR is a 9 digit numeric code.

What Is The Difference Between IFSC Code And MICR Code?

·  IFSC code is developed to initiate electronic money transfer between banks within India; MICR is a Magnetic Ink Recognition technology for making cheque processing faster and simpler.

·  IFSC code is alphanumeric 11 digits unique code, whereas MICR is a 9 digit numeric code.

What is SWIFT CODE?

SWIFT Code Bank used to Transfer fund to International banks. SWIFT Code Banks are provided the broadest coverage of national bank identifiers. SWIFT Code is identifying Bank Country branches. SWIFT Code Bank is unique for each branch. 

The Society for Worldwide Interbank Financial Telecommunication (SWIFT) (also known as ISO 9362, SWIFT-BIC, BIC code, SWIFT ID or SWIFT code) is a standard format of Business Identifier Codes approved by the International Organization for Standardization (ISO). It is a unique identification code for both financial and non-financial institutions. (When assigned to a non-financial institution, a code may also be known as a Business Entity Identifier or BEI.) These codes are used when transferring money between banks, particularly for international wire transfers, and also for the exchange of other messages between banks. The codes can sometimes be found on account statements. SWIFT and BIC codes are basically the same. 

The SWIFT code is 8 or 11 characters, 

Example: BBBBUS3MXXX

·       BBBB 4 letters: Institution Code or bank code.

·       US 2 letters: ISO 3166-1 alpha-2 country code

·       3M 2 letters or digits: location code

·       If the second character is "0", then it is typically a test BIC as opposed to a BIC used on the live network.

·       If the second character is "1", then it denotes a passive participant in the SWIFT network

·       If the second character is "2", then it typically indicates a reverse billing BIC, where the recipient pays for the message as opposed to the more usual mode whereby the sender pays for the message.

·       XXX 3 letters or digits: branch code, optional ('XXX' for primary office)

·       Where an 8-digit code is given, it may be assumed that it refers to the primary office. 

What is BIC?
Bank Identifier Code (BIC), SWIFT codes and Routing Codes are basically the same. 

What is ROUTING CODE?
International banks Routing Code, SWIFT codes & Bank Identifier Code (BIC) are basically the same.

What is Bank BSR Code?

Basic Statistical Return (BSR) Income Tax Department's initiative to receive information and maintain records of tax paid through banks through online upload of challan details is named as OLTAS (Online Tax Accounting System). The collecting bank branch will put a rubber stamp on the challan and its counterfoil indicating a unique Challan Identification Number (CIN) comprising of seven digit BSR Code allotted by RBI to that bank branch, the date of deposit (dd/ mm/ yy i.e. six digits), and the challan serial number in 5 digits. CIN will, therefore, be unique for each challan throughout the country and will be used for identifying the challan in the OLTAS.

What is CIN?

Challan Identification Number (CIN) has three parts Bank Branch Name 7 digit BSR code of the bank branch Date of Deposit (DD/MM/YY) of tax Serial Number of Challan CIN is stamped on the acknowledgement receipt to uniquely identify the tax payment. CIN has to be quoted in the return of income as a proof of payment. CIN is also to be quoted in any further enquiry. Therefore, you must ensure that CIN (comprising the above three parts) is stamped on the Challan by the bank. If not, immediately contact the bank manager and insist on CIN. The Reserve Bank of India has already passed an order dated April 1, 2004 making it compulsory for all tax collecting branches of banks to use a rubber stamp acknowledgement that carries CIN. A separate CIN is given for each challan deposited. If the Bank Manager is unable to resolve the issue, you should address your grievance to the Bank's Regional Manager and the Regional Office of Reserve Bank of India for redressal. 

What is OLTAS?

Income Tax Department's initiative to receive information and maintain records of tax paid through banks through online upload of challan details is named as OLTAS (Online Tax Accounting System). The collecting bank branch will put a rubber stamp on the challan and its counterfoil indicating the CIN. It will be unique for each challan throughout the country and will be used for identifying the challan in the OLTAS