What is MICR CTS?
First of all, MICR Means Magnetic Ink Character Recognition code (MICR Code). It is a character-recognition technology used by the banking organizations for the processing and clearance of cheques and other documents quickly. The technology allows MICR readers to scan and read the information directly into a data-collection device.
CTS – Means Cheque Truncation System. Cheque Truncation System (CTS) or ICS – Image-based Clearing System, in India, is a project of the Reserve Bank of India (RBI), to boost cheque clearing mechanism.
MICR is related to Cheque Clearing System and other two codes IFSC and SWIFT Code are used in Electronic Funds Transfer (online Fund Transfer).
What is IFSC code of a bank?
An IFSC or the Indian Financial System Code is an 11-character alpha-numeric code used by the Reserve Bank of India to identify all the Bank branches.
- In which the first four alphabetic characters represents the bank name,
- The fifth character is 0 (zero) which is reserved for future use.
- The last six characters (usually numeric, but can be also alphabetic) represents the branch.
In simple terms, IFSC stands for Indian Financial System Code. It is an alphanumeric code that is used to identify the particular branch of a participating bank in India.
IFSC is a unique identification code used to accurately identify the bank branch engaged in the digital money transfer system such as National Electronic Fund Transfer (NEFT) and Real Time Gross Settlement (RTGS) within India.
All the bank branches within the country are assigned an IFSC code by the Reserve Bank of India. The code is used by the inter bank fund transfer systems to convey the message to the respective bank branch.
What is SWIFT code?
SWIFT is short form of Society for Worldwide Inter-bank Financial Telecommunication, which is a cooperative non-profit organization. It is fully governed by its member banks.
SWIFT code is a unique identification code assigned to a specific bank to carry on money transfer between banks internationally. It is used when the transfer between two banks happens internationally. It is an electronic message transfer system, which conveys messages in a pre-defined format, anywhere in the world as and when the transaction occurs. This code is also used when there is an interchange of messages between banks.
SWIFT code is allotted to the financial as well as the non-financial institution. The code is a combination of 8 or 11 alphanumeric characters.
- First four characters represent bank code. (Letters only, like XXXX)
- Next two characters represent country code. (Letters only, like YY)
- Next, two characters represent location code (letters and digits, like 1Z)
- Last three characters are optional that represents branch code (letters and digits Any combination of latter and digit like 1YM )
IFSC Code and SWIFT Code two are the unique identification codes that need to be mentioned at the time of digital money transfer.
|Difference Between SWIFT code and IFSC code|
|SWIFT Code is an acronym for Society for Worldwide Interbank Financial Telecommunication Code.||The IFSC code is short form of Indian Financial System Code|
|SWIFT code is a globally recognized code, used at the time of international credit transfer between banks and also when there is an exchange of messages between banks.||The IFSC Code is a unique identification code of a bank-branch used for the purpose of digital money transfer.|
|The SWIFT code is approved by the International Organization for Standardization (ISO) conversely.||The IFSC code is developed by Reserve Bank of India (RBI).|
|Only those banks can take part in an international wire transfer, which is SWIFT code enabled. As opposed to,||The IFSC code is provided to all the Indian bank branches.|
|The SWIFT code consists of 8 or 11 characters.||The IFSC code, that consists of 11 characters.|
|In international money transfers (SWIFT code) the fees charged is higher.||national transfers (The IFSC code) the fees cherged are lower.|
|SWIFT code can be find on the bank’s website or the account statement.||The IFSC code can be found in Bank-branch cheque book and RBI website.|
|SWIFT code is used when the transfer of funds between banks takes place internationally.||The IFSC code is used when there is a nationwide interbank fund transfer (NEFT or RTGS)|
|SWIFT stands for Society for Worldwide Inter-bank Financial Telecommunication, which is a cooperative non-profit organization, fully owned by its member banks. SWIFT code is used when the transfer between two banks happens internationally. It is an electronic message transfer system, which conveys messages in a pre-defined format, anywhere in the world as and when the transaction occurs.||The IFSC code is used when the fund transfers between banks take place within the geographical boundaries of India. It is an alphanumeric code, which recognizes the bank-branch taking part in the electronic fund transfer system.|