ESAF Small Finance Bank IFSC Code & MICR Code

1. The IFSC code assists in uniquely identifying the bank and branch of the beneficiary account. It makes sure that the money is transferred to the right bank account and prevents any errors or delays during the process. 
2. Through various electronic payment methods such as IMPS, RTGS, and NEFT, IFSC enables digital money transactions. 

1. The IFSC code supports many kinds of online transactions, including the payment of bills, taxes, insurance premiums, loan EMIs, etc. You can use it to make online purchases as well as send money to friends and family. 
2. IFSC assists in tracking and monitoring your transactions which minimises misuse of funds or fraudulent transactions. The RBI can track and regulate all electronic transactions with the help of the IFSC code. This increases accountability and transparency in the banking industry while also safeguarding the interests of customers. 

How Does IFSC Work 

The IFSC code allows electronic fund transfers and uniquely identifies a particular bank branch. Giving the account number and the IFSC unique to the branch is necessary in order to facilitate accurate fund transfers via NEFT, RTGS, and IMPS. It is not only used for money transfers but also to buy insurance policies and invest in mutual fund schemes.  

The IFSC code makes sure that the funds are credited to the appropriate recipient and deducted from the appropriate account. The National Clearing Cell of the RBI guarantees security and accuracy by monitoring these transactions.  

How to Find IFSC  

You can find the IFSC code in the following ways: 

1. Cheque leaf: The easiest way to find the IFSC code of your branch is to look into your chequebook. A cheque leaf's top left corner contains the full address of the branch. You will find the 11-digit IFSC at the end of the address. 
2. Passbook: Look for the IFSC code on the front page of your passbook. It includes information about your account as well as your branch.  
3. Bank website: Almost all banks' websites offer branch locator services. You can find the branch locator tool on the bank's official website. The IFSC code can be found using the tool. 
4. RBI website: You can find the IFSC by visiting the official RBI website and navigating to the 'IFSC codes' tab. Choose your bank from a drop-down menu and type in the branch’s name. The IFSC Code for your branch will be provided by the website. 

What is MICR Code 

Magnetic Ink Character Recognition (MICR) is a nine-digit code that accelerates cheque processing. They are unique to each bank branch and are essential to identify both the bank and the branch participating in an Electronic Clearing System (ECS). The MICR code contains three key elements that provide information about the cheque issuer's location, bank, and branch. The first three digits are the city code, which represents the location of the bank branch. The next three digits are the bank code and the bank's unique branch code is represented by the last three digits.  

Uses of MICR 

Some of the benefits associated with MICR are listed below: 

1. MICR is used to verify the authenticity of cheques. It is printed on the bottom of each cheque and contains details regarding the bank and the particular account. 
2. The use of MICR technology minimises errors during cheque processing. The automated reading of MICR codes captures important data such as account numbers and bank details accurately.  
3. To submit applications for financial products like Systematic Investment Plans (SIPs), investment portfolios, and lumpsum mutual funds, MICR codes are required.  

How Does MICR Work 

A particular type of ink or toner that has magnetic material is used to print MICR codes, enabling it to reduce duplication and computers to read and decode data from MICR lines accurately. This data includes account numbers, routing numbers and cheque numbers. The computer can easily determine which branch the cheque belongs to without the need for human intervention. 

How to Find MICR 

The MICR code is usually printed to the right of the cheque number at the bottom of your cheque leaf. The first page of your bank passbook also contains MICR. Most banks' websites provide information about their branches, including the MICR code.