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Q.

Are IFSC and MICR codes different in the context of Banking ... ??? what is the difference ... ..???

Tags: banking, micr, ifsc
Asked by Manoj M, 19 Nov '12 05:10 pm
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Answers (4)

1.

Yes, they are different from each other in their coding & purpose both. The IFSC code is designed to uniquely identify the bank branches in India whereas MICR Code is used to identify bank branches for cheque clearing & online transaction processes. Another difference, MICR or Magnetic Ink Character Recognition is very old coding system which is used to ensure the safety & security of negotiable instruments processing like cheques while IFSC code is a system used for instant transfer of money using internet!!
Answered by dharamender nebhnani, 19 Nov '12 05:17 pm

 
  
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2.

The main differences are:

1. IFSC is a Branch identification code & MICR is a cheque clearing code. Indian Financial System Code IFSC. It is used for electronic payment applications like Real Time Gross Settlement RTGS, National Electronic Funds Transfer NEFT and Centralised Funds Management for future use and last six characters represent branch.MICR Code: Magnetic Ink Character Recognition as printed on cheque book to facilitate the processing of cheques.

2. IFSC is an alpha numeric code designed to uniquely identify the bank branches in India. This is 11 character code with first 4 characters representing the banks code & MICR is a 9 digit code to identify the bank branch.

3. IFSC is a code which allows transfer of funds between two bank accounts and the code for a particular branch is mentioned on your cheque leaves as IFSC : XXXXXXXXXX. MICR or Magnetic ink character recognition is an old system used for cheque clearing system in physical form. MICR code is the 9 digit c ...more
Answered by Shikha Aggarwal, 19 Nov '12 07:15 pm

 
  
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3.

The Indian Financial System Code (also known as IFSC) is a 11 charater code for identifying the bank and branch which an account is held. The IFSC code is used both by the NEFT and RTGS finance transfer systems.

Magnetic Ink Character Recognition, or MICR, is a character recognition technology used primarily by the banking industry to facilitate the processing of cheques.

MICR characters are printed in special typefaces with a magnetic ink or toner, usually containing iron oxide. A special machine is used to read these characters, which can be easily read by humans too. The characters are usually printed on the bottom strip of cheque leaf.

This MICR code is used By RBI (Reserve bank Of India) clearing process to identify the branch and bank for clearing processes.
Answered by iqbal seth, 19 Nov '12 05:13 pm

 
  
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4.

IFSC (Indian Financial System Code) is an 11-character code with the first 4 alphabetic characters representing the bank, and the last 6 characters (usually numeric, but can be alphabetic) representing the branch. The 5th character is 0 (zero). IFSC is used by the NEFT & RTGS systems to route the messages to the destination banks / branches. Magnetic Ink Character Recognition, or MICR, is a character recognition technology used primarily by the banking industry to facilitate the processing of cheques and makes up the routing number and account number at the bottom of a cheque.
Answered by Uncommon Freind, 19 Nov '12 05:15 pm

 
  
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