IFSC stands for Indian Financial System Code, is a 11 digit alpha-numeric code which is used by Electronic Funds transfer systems to identify the Bank branches. You may require the IFSC code while transacting money from one bank to another. In India, there are mainly 2 types of Electronic Funds Settlement Systems, RTGS(Real Time Gross Settlement) system and NEFT(National Electronic Funds Transfer) system. IFSC Code is generally used for NEFT/RTGS transfer. The NEFT/RTGS systems use this code to route the messages to the destination bank-branch. IFSC Code is an alpha-numeric code that uniquely identifies a branch of particular bank participating in NEFT(National Electronic Funds Transfer) system.
MICR Code (Magnetic Ink Character Recognition Code) is mainly used by the banking sector for processing & clearance of cheques and some other bank related documents. When you deposite a check to the bank, it is sent for processing to a central location. The proccessing unit then sorts the checks based on thier MICR information. The MICR information line, usually at the bottom of cheques, has a magnetic head which can detect the magnetic pattern for each character. The Characters on MICR information line are printed in a special font. Each of the character is formed by a 7 x 10 matrix. MICR readers scans and read the information, and send to a data-collection device. MICR characters line is human redable.
IFSC Code is an 11 character alphanumeric code with the first 4 characters representing the name of the bank, and the last six characters representing the branch. The 5th character is reserved for future use and is 0(zero).
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