In the banking industry, various codes are used for smooth and secure operations. Each code has a distinct role to play. For instance, Swift Codes are used for international transactions while IFSC Codes are used for domestic funds transfers. Card processing is aided by BIN i.e., Bank Identification Number while QR codes integrate mobile payments. MICR codes are used for cheque processing. Each of these codes serves a unique purpose and forms the backbone of efficient and secure banking activities worldwide.
Different Types of Codes Used in Banking Industry in 2023
The following are the different types of codes used in banking industry in 2023
IFSC Code
Indian Financial System Code is IFSC Code full form. IFSC Code is an 11-digit alphanumeric code designed for interbank fund transfers in India. This code identifies the bank branch of every individual bank participating in various online funds transfer options like NEFT, RTGS, IMPS, etc. IFSC identifies the receiver and the sender branches and ensures accurate fund routing. This system enables the RBI to monitor secure and precise interbank transactions. The IFSC Code is found on the first page of a passbook and cheque leaves ensuring easy access and usage.
The first four alphabets of the code represent the bank and the last 6 digits represent the bank branch. The 5th digit is zero which is reserved for future use. An example of a Bank IFSC Code is CNRB0002513. CNRB is Canara Bank and 002513 is the Kathriguppe branch of the bank.
MICR Code
MICR Code or Magnetic Ink Character Recognition Code, is a 9-digit code that is utilised for ECS (Electronic Clearing Service). The code denotes the bank branch location for ECS service. The MICR code is printed on cheques and speeds up clearance and aids faster and more accurate funds transfers. MICR code was introduced to replace manual cheque processing, minimise errors and expedite clearing. MICR code is printed on cheque leaves and is also available on the opening pages of bank passbooks.
The first 3 digits of the MICR Code denote the city. The next 3 digits denote the bank and the last 3 digits denote the bank branch.
SWIFT Code
SWIFT Code (Society of Worldwide Interbank Financial Telecommunication) also called BIC, forms a global network for secure, standardised financial transactions. It pinpoints the beneficiary’s country, city, and branch, ensuring precise money routing. You can get the SWIFT Code from the bank branches or through the bank’s customer care helpline. It is the key to accurate and safe cross-border transactions.
The format of the SWIFT code is CNRBINBBXXX. The first four alphabets CNRB represent the bank i.e., Canara Bank, the next two letters IN represent the country i.e., India, the next two letters BB indicate the location and the last 3 letters XXX represent the bank branch. Each branch is given a distinct SWIFT Code. In case you are confused about the SWIFT code to be used, you can always use the SWIFT Code allotted for the head office of the bank for sending money.
Cheque Number
A cheque number, a 6-digit figure enclosed in quotes and printed at the bottom of the cheque, serves as its identifier. The cheque number is printed at the bottom of the cheque next to the MICR code. Tracking of cheque status becomes easy with the cheque number. While depositing a received cheque, specific details like date, account number, amount, and unique cheque number must be filled. This number acts as a key identifier for banking transactions involving cheques. A unique combination of 6 digits forms the cheque number.
CIF Number
CIF full form is Customer Information Number. A CIF Number acts like a digital dossier provided by a bank during account opening. It encompasses an account holder’s complete banking specifics like loan info, Demat accounts, KYC data, etc. Banks exclusively manage CIF Numbers for easy data retrieval. One CIF Number can link multiple bank accounts owned by a single individual, enhancing transparency and reducing fraud risk. This system streamlines customer-bank interaction and replaces manual tracking methods, while the CIF Number itself is usually on the passbook’s cover page, accompanied by other account particulars.
The CIF Number format differs with the banks. While some banks have 8 digits CIF numbers, other banks may have 11 digits CIF numbers. CIF numbers will be printed on the front page of bank passbooks along with IFSC Code and MICR Code.
MMID
MMID means Mobile Money Identifier and is used in IMPS transactions. Understanding IMPS is a requisite to comprehend MMID. IMPS or Immediate Payment System is a channel for online funds transfer that facilitates real-time settlement. The service is available 24×7 all through the year and differs from NEFT and RTGS.
Registration of mobile numbers with the bank is mandatory for IMPS. You can adopt various methods to initiate a transaction through IMPS after registering for mobile banking. It can be any of the methods given below:
IMPS through IFSC
IMPS using Mobile Number and MMID
IMPS via SMS
IMPS at an ATM
MMID is a unique code streamlining quick IMPS fund transfers. By accessing your bank’s mobile banking app, enter the recipient’s mobile number, the amount, and the MMID of the beneficiary to execute the transaction effortlessly. MMID will be issued by the bank on registering for mobile banking service.
PAN Number
PAN, a distinct 10-digit code from the Income Tax department, serves as an electronic repository for a taxpayer’s tax details. Vital for significant financial actions like bank account opening, property transactions, Mutual Fund investments, and acquiring a gas connection. PAN is also crucial for income tax payment and doubles as a person’s identity proof.
PAN Card, a plastic card issued by the IT department will have the 10-digit PAN engraved on it.
- The first 3 letters are a random selection of alphabets between AAA to ZZZ
- The fourth letter indicates the taxpayer category:
- A: Association of Persons
- B: Body of Individuals
- C: Company
- F: Firms
- G: Government
- H: Hindu Undivided Family
- L: Local Authority
- J: Artificial Judicial Person
- P: Individual
- T: Association of Persons for Trust
- The fifth letter is the first letter of the Individual’s surname
- The next four digits are numbers between 0001 to 9999
- The tenth digit of the PAN number is the alphabet check number
TAN Number
The Income Tax Department of the Indian Central Government issues a distinctive 10-digit alphanumeric code known as the TAN (Tax Deduction and Collection Account Number). It is assigned to individuals managing tax collection or deduction (TCS/TDS). As required by Section 203A of the IT Act, this unique TAN must be mentioned on all TDS returns.
The TAN structure comprises 4 alphabets, followed by 5 numbers, and ends with an alphabet. This identifier holds encoded information, including:
- The first 3 alphabets denote the jurisdiction code.
- The 4th alphabet represents the holder’s initial.
- The following 5 numerals are exclusive identifiers.
- The last alphabet serves as a unique identifier.
TAN Number is a pivotal component of India’s tax compliance framework, adapting to various revisions over time.
Aadhaar Number
An Aadhaar number is a 12-digit randomised identifier issued by the UIDAI (“Authority”) to Indian residents who have successfully undergone the verification process outlined by the Authority. Regardless of age or gender, any individual living in India has the option to voluntarily register and acquire an Aadhaar number.
During the registration process, the person interested in enrolling must provide basic demographic and biometric details, and this process is completely free of charge. An individual is required to register for an Aadhaar only once, and after a thorough deduplication process involving demographic and biometric data, a unique Aadhaar number is generated.
UAN
The UAN, a distinctive 12-digit identifier, is allotted to every worker who contributes to the Employees’ Provident Fund. The Employee Provident Fund Organisation (EPFO) is responsible for creating and assigning this individualised number. The Ministry of Labour and Employment oversees the authentication of UAN in accordance with the Government of India’s directives. Remarkably, this number remains constant for an employee throughout their lifetime, regardless of how often they switch to new employment opportunities.
PRAN Number
The PRAN, or Permanent Retirement Account Number, is a distinct 12-digit code that identifies individuals registered within the National Pension Scheme (NPS). Mandatory for government employees, it is obtained through registration with the National Securities Depository Limited (NSDL). PRAN encompasses two NPS account types:
- Tier-I: A non-withdrawable account for retirement savings.
- Tier-II: Similar to a savings account, allowing withdrawals but without tax benefits.
Once PRAN is allocated, subscribers can receive a physical PRAN card. This card is an enduring identifier, remaining unchanged for the subscriber’s lifetime.
BSR Code
The BSR Code (Basic Statistical Returns Code) is an exclusive identifier allocated by the RBI to all registered banks in India. This code is utilised for monitoring online tax payments from different banks, prompting alerts to the Income Tax Department. Additionally, the BSR Code aids in uploading challan details, encompassing bank-recorded tax payments. The BSR format comprises seven numeric digits, where the initial three digits denote the bank, and the subsequent four digits signify the branch.
Different Codes Used in the Banking Industry FAQ’s:-
You will find the IFSC Code on the first page of your passbook. You can also refer to your cheque to get the IFSC Code.
MICR Code enables verifying the originality of a document. With the MICR code, you can easily differentiate between an original cheque and a fake cheque.
SWIFT code is used for international transactions. When funds have to be transferred to an account overseas, SWIFT Code will be required.
UAN is the unique number issued by EPFO for employees investing in the Employees Provident Fund. With the help of UAN individuals can transfer and withdraw funds without the intervention of the employer. The monthly deposits into the EPF account can be checked with UAN.
Yes. All NPS (National Pension Scheme) subscribers need to have a PRAN card.