IFSC Code & MICR Code - Explained in Hindi - YouTube

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Namaskar, my name is Mukul

And you are welcome to the Asset Yogi

Where we unlock the knowledge of finance

In our previous video, we learned about the swift code

When you do an international transaction

Or you send money outside India. Then you will need the swift code

of the bank account to whom you are sending the money

If you take money in India from any outside company or individual

Then you need the swift code of your bank account.

But if we do a transaction in India from one account to another

Then which codes are needed? They are IFS Code and MICR Code

But why are these two codes different?

Where do you get these from?

I will give answers to all these questions in this video

Please watch the video from the start till the end

So that you will not be confused. Let's go straight towards the blackboard

So if we talk about the full form of IFSC code

Then it is the Indian Financial System Code

It is assigned differently to every branch

So if you want to transfer the money online

to any account whether through NEFT, RTGS, or IMPS

So to whatever account you want to transfer the money

Then you will need the IFSC code of that branch

Who assigns these codes?

The Reserve Bank of India assigns these codes.

It is a unique code for every branch

Let's understand this with the help of an example

Assume your account is in SBI Karol Bagh Branch, Delhi

And you want to transfer the money to someone.

And to whoever you want to transfer the money

His account is in Axis Bank, Ramapuram Branch of Chennai

So you will need the IFSC code of

the Axis Bank, Ramapuram branch of Chennai

And that IFSC Code is

UTIB0000074

So what does it mean?

I will tell you by breaking it up.

The first four digits are the bank codes

So the code of Axis bank is UTIB

This is a four-digit code

Earlier the name of the bank was UTI Bank. I think the codes haven't changed yet

The same codes are running. Then the next digit is 0

This is not "O". You may get confused but this is zero

We also call it a control number. You will always get zero in today's date.

But it may change in the future. This is kept for the future use

if the expansion happens. Then the next 6 digits are

your branch code

This means this is the code of the Ramapuram branch of the Axis bank

This 6 digit code is its code.

Either you will get only numeric code or alphabetical code

It can be anything. But generally, you get numerical code.

So this was about the IFSC code.

Now we will quickly understand what is the MICR Code

The full form of MICR Code is Magnetic Ink Character Recognition

So as we talked about in IFSC Code

That you will need an IFSC code for online transfer

MICR Code is used for cheque transfer. So you may have seen that

whenever you present a cheque in the bank, then it is put under the scanning machine

The MICR Code is read in that

So this works as a barcode in a way

So whenever you present a cheque then their clearance

can be done in a secured manner and can be done fastly

That's why this technology of Magnetic Ink Character Recognition is used

This is a 9 digit code.

I will show you how you will get this code.

It is a different code for every branch. Because your branch can be identified

by this clearly and along with that your account number and cheque number.

So there is no chance of a mistake. Your money is transferred immediately

So MICR is better than a barcode because

it has proper digits and humans can also read it.

So if you are asked to quote MICR code somewhere

Then you can immediately tell after looking at your cheque

And you can write it in any form.

So how is the MICR Code represented? We will see its breakup also.

If we talk about the Ramapuram branch of Axis Bank, Chennai

Then its MICR Code is 600211005

So what does this mean?

The first three digits are your city code.

City code means it is the code of Chennai

After that, 211, the next three digits

It is your bank code. This is the code of Axis bank

Then the last three digits are your branch code.

This means it is the code of the Ramapuram branch

It is of 3 digits.

Where do you get these codes(MICR and IFSC) from?

You get these from your cheques

So if you see in your cheque, you surely know the cheque number of 6 digits

Like in this case it is 022046. This is your cheque number.

Then the IFSC code is mentioned

Either you will get it at the bottom or at the top.

So as we have seen IFSC code of the Ramapuram branch is UTIB0000074

Now see this

The nine-digit code that you are seeing here

This is MICR Code

We have already seen it

600211005

So if this cheque is presented then

This code will be scanned.

And the cheque is transferred in a secured and faster way through MICR code

An IFSC code is used in an online transfer.

I hope after watching this video

The concept of IFSC and MICR code is clear to you

I hope you liked this video

Then like and share this video

If you have any suggestions or you want to suggest any topic for the future videos

Then you can comment below

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Till then keep learning, keep earning

And be happy as always.