Different codes used in banking sector (Part-1) : Banking Awareness Series

Team Adda247 and Bankers Adda have introduced a Special Banking Awareness series for SBI and IBPS Interviews 2021. In this series, we will be introducing the candidates with some banking awareness topics  On a daily basis that will improve their general awareness and will also ensure that the candidates do not lack in any banking term when it comes to the interview round. Today the topic of our Banking Awareness Series is Different codes used in banking sector (Part-1).

Here are some codes which were introduced to accelerate banking operations in the country.

1.) IFSC (Indian Financial System Code):

Generally IFSC is considered as the base of banking because it is essential part of money management in India.

IFSC identifies the payer’s and payee’s bank branch and ensures that funds are transferred to the correct bank branch.

It consists 11 character alpha numeric code, in which first 4 characters represents bank and last 6 characters represents the bank branch and 5th character (Zero) is kept for future usage.

IFSC is generally printed on the front page of the passbook even on the cheque leaf.

 

2.) MICR Code (Magnetic Ink Character Recognition Code):

MICR technology is used for printing MICR Codes on cheques.

It is the 9 digits code used to recognise the location of the bank branch which is participating in ECS (Electronic Clearing Service).

Out of 9 digits the very first three digits represents the city, next three represents the bank and last three digits represents the bank branch.

 

3.) SWIFT Code:

Society of worldwide Interbank Financial Telecommunication (SWIFT) code is also known as BIC. It is a network that enables financial transactions across the world in a secure and systematic manner.

Generally SWIFT Code is printed on the front page of the passbook.

SWIFT Code contained 8 or 11 alpha numeric characters, in which first 4 characters represents city, next 2 characters represents Country, then 2 characters represents location of city, and then optional last three in 11 alpha numeric characters represents the bank branch.

 

4.) MMID (Mobile Money Identifier):

Mobile Money Identifier can be defined as a unique code which is used to facilitate immediate fund transfer via IMPS.

One can simply log in to the mobile banking app of the bank and have to enter the receiver’s mobile number, the amount and MMID then the fund will be transferred easily.

MMID is a combination of 7-digits.

 

 Tomorrow second part will be continued from here.

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