The IFSC code plays very important role in online fund transfer systems such as NEFT, RTGS and IMPS. Wrong IFSC code can result in major loss, so it is extremely important that you make sure the IFSC code of recipient’s account bank branch is correct. IFSC stands for Indian Financial System Code. It is an 11 characters code including numbers and letters for identifying the bank and its branch. The data here could be outdated so you must verify the same with a bank authority. IFSC code is also printed in account holder’s passbook and cheque leaf. Correct IFSC code assures that the cash gets transferred to the right recipient’s account without any trouble.
MICR stands for Magnetic Ink Character Recognition. In banking industry, it is a character recognition technology which helps in faster processing of cheques. This MICR code is used By RBI (Reserve bank Of India) to identify the branch and bank for cheque clearing processes. MICR characters are printed in special typefaces with a magnetic ink or toner, usually containing iron oxide. A special device is used to read these characters and same can be easily read by humans too. MICR code is usually printed on the bottom strip of cheque leaf. It is commonly required to fill up in your investment forms or SIP form. Make sure its correct by verifying it on your cheque leaf or by contacting bank authority.
SWIFT stands for Society for Worldwide Interbank Financial Telecommunication. It is also known as BIC (Business Identifier Codes). Swift codes are commonly used to perform international money transfer between banks. Wrong SWIFT code can result in major loss, so please do contact your bank branch to verify it.
IMPS stands for Immediate Payment Service. It is commonly known as Interbank Mobile Payment Service. IMPS is something which you should use when you want to transfer funds instantly 24x7 because this service is also available during holidays. Due to its instant nature, once fund transaction is initiated, it cannot be cancelled. Some banks do charge a transaction fee, it varies from bank to bank so you must confirm this from your bank. NPCI, also known as National Payments Corporation of India is an organization that regulates the retail payments in India, has provided this facility.
UPI stands for Unified Payments Interface. As per National Payment Corporation of India, Unified Payments Interface (UPI) is officially operational. There are various UPI apps which you can download from google playstore to perform such transactions. Such apps help users to transfer money from one bank to another without using sensitive data. But you must contact a bank authority to get more info or do proper research before using such apps.
NEFT stands for National Electronic Funds Transfer. It is an online fund transfer system supported by Reserve Bank of India (RBI). It helps an individual, firms and corporates to transfer funds electronically from his account in any bank branch to an individual, firm or corporate having an account with any other bank branch in the country. For NEFT fund transfers, internet banking is used. NEFT transfer also known as e-cheques because the funds are not transferred in real-time. Funds transferred using NEFT will be credited to beneficiary’s account within 2 days. Because NEFT operates on DNS, also known as Deferred Net Settlement, funds are settled in batches.
RTGS stands for Real Time Gross Settlement. It can be defined as the real-time settlement of funds transfers individually on an order by order basis. To transfer funds using RTGS, you must make sure that both sender’ and recipient’ bank branch have RTGS facility. To proceed with transaction, you need the IFSC Code to identify the branch to which you want to transfer funds. It is important to note that not all branches have IFSC Codes. RTGS fund transfers are managed by Reserve Bank of India (RBI). Deals made using RTGS are unchangeable and thus, it is final. RTGS is mainly used for transaction of big amounts. In case of any doubts, please do approach nearby bank branch to get more info from a bank authority.