DIFFERENCE BETWEEN IFSC AND MICR CODE

In the banking sector both IFSC and MICR are common terms. Do you know the difference between MICR and IFSC code? MICR and IFSC code both are used for financial transaction in order to transfer money using NEFT and RTGS.

IFSC

• IFSC code stands for Indian Finance System code.
• IFSC code is developed to initiate electronic money transfer between banks with in india.
• This code is used by electronic payment system.
• To transfer funds, one needs to know the IFSC code, so that the beneficiary gets the funds directly in his account.
• This IFSC code system is used for instant transfer of money using internet.

MICR

• MICR is a Magnetic Ink Character Recognition technology used mainly by the banking industry to ease the processing and clearance of cheques and other documents.
• MICR is old system, used for ensuring the safety and security, to facilitate the processing of the cheques Read more...