Financial System Code is

Money Code
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IFSC CODE:
The Indian Financial System Code is a code for
identifying the bank and branch which an account
is held. The IFSC code is used both by
the RTGS and NEFT finance transfer systems.
IFSC stands for Indian Financial System Code . In
the Structured Financial Messaging System
(SFMS), the Indian Financial System Code (IFSC)
is being used as the addressing code in user-touser message transmission. The Payment System
Applications such as RTGS, CFMS and NEFT
developed by the Reserve Bank of India use these
codes.
The code consists of 11 Characters - First 4
characters represent the entity; Fifth position has
been defaulted with a '0' (Zero) for future use;
and the Last 6 character denotes the branch
identity.

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IFSC is being identified by the RBI as the code to

be used for various payment system projects
within the country, and it would, in due course,
cover all networked branches in the country. In
due course, when all bank branches participate in
electronic payment systems, they would need to
have a single identifiable unique code and IFSC
would serve the purpose effectively.

2. Magnetic Ink Character

Recognition MICR:
Magnetic Ink Character Recognition or MICR, is a
character recognition technology used primarily by
the banking industry to facilitate the processing of
cheques. The technology allows computers to read
information (such as account numbers) off of
printed documents. Unlike barcodes or similar
technologies, however, MICR codes can be easily
read by humans.

MICR characters are printed in special typefaces

with a magnetic ink or toner, usually containing
iron oxide. As a machine decodes the MICR text, it
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first magnetizes the characters in the plane of the

paper.
Then the characters are passed over a MICR read
head, a device similar to the playback head of a
tape recorder. As each character passes over the
head it produces a unique waveform that can be
easily identified by the system.

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Download Full Basics of

IFSC,MICR,RTGS & NEFT
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/basics-of-ifsc-micr-rtgs-amp-neft

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