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All you Need to Know about IFSC and MICR code



The Indian Financial System Code (or IFSC code) is an 11-digit alpha-numeric code used by central banks to uniquely identify bank branches within the National Electronic Funds Transfer (NEFT) network. Click here to know about nabard.

What is IFSC

Electronic payment system applications such as real-time gross settlement (RTGS), NEFT, and Centralised Funds Management System use the IFSC code (CFMS). This code is required for transfers of funds from one bank account to another. Every bank branch will have its own code, and no two branches (even those of the same bank) will ever be the same.

The first four digits of an IFSC code represent the bank, and the last six characters represent the branch. Zero is the fifth character.

What is IFSC Used for

  • For internet banking, the IFSC code is critical. When making an internet transfer, the user must supply certain details, including the receiving bank branch’s IFSC code. The fund cannot be transferred without it
  • We no longer have to queue for modest transactions thanks to online banking. The fund can now be moved in no time thanks to the IFSC code
  • Every bank and its branches are given unique codes to ensure a secure transaction. As a result, there is no risk of fraud or theft. With IFSC Codes, any security breach is virtually impossible
  • Another notable advantage of the IFSC code is that it promotes paperless banking. You can now conduct electronic, paperless fund transfers with the help of the IFSC
  • Furthermore, IFSC Codes can be used to satisfy the demands of both individual and business clients. Even government entities utilise the IFSC to send money and pay salaries. Banking has become more convenient across the country since the adoption of the IFSC Code.

What is MICR?

MICR code is a code that is printed on cheques using MICR technology (Magnetic Ink Character Recognition technology). This allows the cheques to be identified, resulting in faster processing.

An MICR code is a 9-digit code that uniquely identifies a bank and branch that is a member of an Electronic Clearing System (ECS).

It is divided into three sections:

  • The city is represented by the first three digits (City Code). They correspond to the PIN code used for postal addresses in India
  • The bank is represented by the next three digits (Bank Code)
  • The branch is represented by the last three digits (Branch Code).

The MICR code is found at the bottom of a cheque leaf, right next to the cheque number. It’s also printed on the first page of a bank’s savings account passbook.

What is MICR code used for

When filling out various financial transaction forms, such as investment forms or SIP forms, or transferring funds, the MICR code must be mentioned.


The introduction of electronic payment methods has cleared the way for a growing emphasis on the use of the IFSC Code. You can’t send money to a beneficiary today unless you have the IFSC Code, which is more important than ever. So, before you send or receive money, double-check that you have it.

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