All About IFSC Code and MICR Code in Indian Banking System

Both the IFSC Code and MICR Code are integral parts of the Indian Banking System. These codes are often referred to as the governing code of the Indian banking system. Generally, people are not aware of the significance of these two codes. In this article, we will walk you through the details of the IFSC Code and the MICR Code of the Indian Banking System.

What is IFSC Code?

The Indian Financial System Code is abbreviated as IFSC. It is a special 11-digit alphanumeric number that is used for IMPS, NEFT, RTGS, and every other online fund transfer process. You can find this code easily on the bank’s issued check leaf or the bank passbook. The bank receives the IFSC codes from the Reserve Bank of India (RBI). In addition to the cheque leaf and passbook, the bank’s and the RBI’s official websites both list the IFSC code. This code is only ever provided to specific bank branches; no two branches are ever given the same IFSC code.

The IFSC is always mandatory in order to start a fund transfer via net banking. Banks do not alter or update the IFSC code unless there has been a merge. This code is only ever provided to specific bank branches; no two branches are ever given the same IFSC code.

Let us look at an example of an IFSC code


The bank name is revealed via the first four characters of the 11-digit alphanumeric code. The fifth digit is a zero for future bank branch expansion in accordance with RBI norms. The last six digits indicate the bank’s location or the Punjab National Bank IFSC code – PUNB0605800

  • PUNB – Bank Branch (Punjab national bank)
  • 0 – Zero
  • 605800 – Branch Code (Punjab national bank ADARSH NAGAR Delhi)

Benefits of IFSC code

  • Quick transfer of funds

Nowadays, digital banking is far more practical and quick than traditional banking techniques. By skipping the lengthy lines, you may complete your funds’ transfer faster. The IFSC code allows for the speedy completion of digital transactions, which saves a lot of time.

  • Better communication

Rapid and clear communication between the sender and the receiver is made possible by the IFSC Code. Every instance a digital transaction is completed, the appropriate banks immediately notify both parties through SMS or email.

  • Trustworthy and secure

As these codes help to authenticate the same bank through which the transaction takes place, they help to ensure safe and secure transactions by reducing the likelihood of any mistakes or fraud.

What is MICR Code?

MICR code is a number that is written on cheques. U is referred to as Magnetic Ink Character Recognition technology. The MICR code was developed to make it possible to identify the checks, which leads to quicker processing of checks. 

This code has nine digits. It is a special identification number for each bank and branch participating in the electronic clearing system(ECS). When filling out different financial transaction forms, such as investments forms, SIP forms, or paperwork for transferring money, one must submit the MICR code. 


The MICR code consists of 9-digit and the first three-digit indicate the city code. Further, the next three-digit signifies the bank code. Lastly, the final three-digit represents the branch code.

The MICR code of one of the Delhi Punjab national bank branches may represent 110024137. This MICR code, 110 depicts the city of Delhi, 024 depicts the bank code of Punjab national bank, and lastly, 137 signifies the branch code.

Benefits of MICR Code

  • Minimized fraud 

The MICR code uses magnetic ink and distinctive MICR characters to defend against various types of financial fraud. The MICR code still identifies the proper account owner even if the name on the check is altered.

  • Accuracy 

Due to the unique ink used to print the characters, MICR characters may be read through markings like stamps and signatures.

  • Speeds up processing

A MICR reader makes processing checks simple and rapid.

  • Low rates of error

The MICR has a low mistake rate in comparison to other character recognition systems. Approximately there is roughly one read mistake for every 20,000 to 30,000 cheques.


Punjab National Bank IFSC code is an 11-digit alphanumeric code that is used to identify the bank branch for online fund transfers. This code is unique for every bank and branch, and is necessary for completing NEFT, RTGS, and IMPS transactions. You can find your PNB IFSC code by using the Punjab National Bank Branch Locator tool on their website, or by contacting customer care. ###