Roadmap for Banking of the Future
Our Banking Industry uses various codes and numbers for the smooth functioning of the banking industry. Some examples are IFSC, MICR Codes and SWIFT Code. In this post, we will discuss various such codes and numbers in use by the Banking and Financial Industry.
Short Summary
| Code | Number of Digit | Purpose |
| Indian Financial System Code (IFSC) | 11 | Used for branch identification for money transfer through NEFT, RTGS or IMPS. |
| Magnetic Ink Character Recognition(MICR Code) | 09 | Used as branch identification number in Cheque based clearing, ECS and ACH. |
| Society for Worldwide Interbank Financial Telecommunication (SWIFT) Code | 8-11 | In India, SWIFT is basically used for International money remittance and receival. |
| Banking Statistical Record (BSR) code | 7 | To keep a record of tax collected by the bank branches from the customers and passing it to Income Tax Office to keep a record for collection of tax. |
| Mobile Money Identifier (MMID) | 7 | for transferring money via IMPS. Though now IMPS is possible though IFSC also. |
| UPI ID/ Virtual Payment Address (VPA) | variable | For UPI transactions |
| Legal Entity Identifier (LEI) | 20 | It is a key measure to improve the quality and accuracy of financial data systems for better risk management post the Global Financial Crisis. |
| Permanent Account Number (PAN) | 10 | it enables the Income Tax department to identify and link all transactions of the PAN holder with the IT department. |
| Tax Deduction Account Number or Tax Collection Account Number (TAN) | 10 | TAN is a unique identification number which is allotted to persons who are required to deduct tax at source or collect tax at source. |
| International Securities Identification Number (ISIN) | 12 | to uniquely identify a security. |
| Aadhaar Number | 12 | Identification number for Resident Indians |
| Universal Account Number (UAN) | 12 | It is possible that a person has worked in more than one organisation where he/she was contributing to the EPFO. Now, he/she will have a single UAN throughout. This UAN will help the member to assemble all his PF accounts associated with multiple organizations at one place. |
| Institution Identification Number (IIN) by NPCI | 6 | It is used to uniquely identify a bank to which the APB transaction has to be routed in the Aadhaar Payment Bridge (APB) System. |
Indian Financial System Code (IFSC) (11 digits)
IFSC is a 11 digit number that acts as identification of the particular bank branch that participates in NEFT and RTGS. Presently, the codes are alpha-numeric, and conform to the SWIFT BIC code.
Purpose: Used for branch identification for money transfer through NEFT, RTGS or IMPS.
Number of Digits: 11. With 5th digit as Zero (0).
IFSC is alloted to bank branches by the Reserve bank of India.
The NEFT rides on the Structured Financial Messaging Solution (SFMS) which is basically designed for both inter-bank and intra-bank exchange of messages between the bank branches. As such, every branch is required to have the unique branch IFSC to enable the systems to route the message to the intended branch.
Components of IFSC
Example of IFSC Code: SBIN0000691
First Four Characters– Represents the name of the bank. Here it is State Bank of India.
Fifth Character- The fifth character is zero. This fifth digit which is 0 (zero) is reserved for future utilization.
Last six Characters- It can be numeric or alphanumeric. It acts as a branch identifier and is mainly the branch code of the bank branch.
Task for our readers. Can you find out the name of the bank branch of SBIN0000691. Comment in our comment section below.
Magnetic Ink Character Recognition(MICR Code)- 9 digits
MICR Code is a 9 digit number which is unique for every bank branch (other than RRBs) and is used for branch identification in cheque clearing services. The MICR Code of the branch is printed on its cheque leaves.
Purpose: Used as branch identification number in Cheque based clearing, ECS and ACH.
Digits: 9 digits (all number)
Components of MICR Code
First Three Digits– Represents the city code. It is mostly the first three-digit of the pincode of the city where the branch is located. Example: for city New Delhi whose pincode is 110001, the city code will be 110.
Middle three digits- It is the bank code representing the bank. For example, the bank code of SBI is 002.
Last three digit– it represents the branch of that bank.
Example of MICR Code- 110-002-087 (First three digit shows that the branch is of New Delhi, middle three-digit shows that the branch if of SBI)
Task for readers- Find out the name of the branch with MICR Code 110002087.
Society for Worldwide Interbank Financial Telecommunication (SWIFT) Code- 8 to 11 digits
Bank SWIFT Code is a standard format of Bank Identifier Code (BIC) and is unique for each bank. These codes are used when transferring money and messages between banks. Presently in India, SWIFT Code is used only for international transactions. SWIFT is yet to start their operation in India for domestic transactions. As such, BIC is not being used presently for routing of transactions domestically.
SWIFT Code is also known as Bank Identifier Code (BIC).
Purpose: In India, SWIFT is basically used for International money remittance and receival.
Number of digits: 8 to 11.
Components of SWIFT Code
The SWIFT code consists of 8 or 11 characters. When 8-digits code is given, it refers to the primary office.
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First 4 characters – bank code (only alphabets)
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Next 2 characters – Country Code as defined by ISO 3166-1 alpha-2 (only letters)
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Next 2 characters – location code (letters and digits) (passive participant will have ‘1’ in the second character)
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Last 3 characters – branch code, optional (‘XXX’ for primary office) (letters and digits)- The branch identifier is a 3 character optional element that can supplement the 8 character BIC, used to identify specific locations, departments, services or units of the same business party.
Example of SWIFT Code: SBININBB104
Banking Statistical Record (BSR) code- 7 digits
Every bank branch which collects tax is alloted a BSR Code by RBI. When a customer approaches these bank branch for deposit of tax, then the BSR Code is used while filing Tax Deduction at Source (TDS) and Tax Collected at Source (TCS) returns. This code help banks to keep a record of every online tax payment done by the bank branch. This detail is then made available to the Income Tax Department by the banks. After this, the BSR code is used by the Income Tax Department to receive information regarding the taxes that are paid through the banks and uploads the challan details.
Purpose: To keep a record of tax collected by the bank branches from the customers and passing it to Income Tax Office to keep a record for collection of tax.
Number of digits: 7
Component of BSR Code
First three digits identifying the bank and
Last four digits identifying the branch.
Mobile Money Identifier (MMID)- 7 digit
MMID is an identifier which is used in payments that are made using Interbank Mobile Payment Service (IMPS). For this, a customer who wishes to use IMPS must register for mobile banking and get Mobile Money Identifier (MMID) & Mobile Banking Pin (MPIN) for initiation of a transaction.
Purpose: for transferring money via IMPS. Though now IMPS is possible though IFSC also.
Number of digits– 7
Components of MMID
First four-digit – it identifies the bank of the user
Last three digits – it identifies the account of the user.
UPI ID/ Virtual Payment Address (VPA)
For making payment through Unified Payments Interface (UPI), you need to know the UPI ID of the receiver. The technical name for UPI ID is Virtual Payment Address (VPA). It is similar to an email ID. Example of a UPI ID is: byscoop@okaxis.
The part before the “@” can be chosen by the customer, and the part after “@” represents the bank in which the customer has the account.
However now, UPI transactions can also be initiated without knowing the VPA, directly just by knowing the mobile number of the receiver. This is due to the fact that the mobile number and VPA are linked at the bank end.
Legal Entity Identifier (LEI)- 20 digits
Legal Entity Identifier (LEI) is a 20-digit unique code that is used to identify parties involved in financial transactions worldwide. It is a key measure to improve the quality and accuracy of financial data systems for better risk management post the Global Financial Crisis.
In India, RBI has recognised Legal Entity Identifier India Ltd (LEIIL) as the issuer of LEI to entities. LEIIL is a subsidiary of the Clearing Corporation of India Limited (CCIL).
RBI has made it mandatory for corporate borrowers having aggregate fund-based and non-fund based exposure of ₹ 5 crore and above from any bank to obtain Legal Entity Identifier (LEI) registration and capture the same in the Central Repository of Information on Large Credits (CRILC).
Permanent Account Number (PAN)- 10 digit
PAN is a 10 digit number issued by Income Tax department and it enables the Income Tax department to identify and link all transactions of the PAN holder with the IT department.
Number of digits: 10
Components of PAN Number
First Three character– represent the alphabetic series running from AAA to ZZZ.
Fourth Character– represents the status of the PAN holder
Wherein,
“P” stands for Individual
“C” stands for Company
“H” stands for Hindu Undivided Family (HUF)
“A” stands for Association of Persons (AOP)
“B” stands for Body of Individuals (BOI)
“G” stands for Government Agency
“J” stands for Artificial Juridical Person
“L” stands for Local Authority
“F” stands for Firm/ Limited Liability Partnership
“T” stands for Trust
Fifth character– In case of individuals, it is the first character of the PAN holder’s last name/surname. In case of non-individual PAN holders fifth character represents the first character of PAN holder’s name.
Next Four numbers– sequential numbers running from 0001 to 9999.
Last digit– the tenth character is an alphabetic check digit.
Tax Deduction Account Number or Tax Collection Account Number (TAN) – 10 digit
It is a 10 digit number and is obtained by all persons who are responsible for deducting tax at source (TDS) or who are required to collect tax at source (TCS).
TAN is allotted by the Income Tax Department.
Purpose: TAN is a unique identification number which is allotted to persons who are required to deduct tax at source or collect tax at source.
Number of digits– 10
Components of TAN
First four characters– are letter, of which first three represents the city or state where the TAN was issued. While the fourth character is the first alphabet of the name of the deductor.
Next Five characters– Are numbers
Last character– is an alphabet.
International Securities Identification Number (ISIN)- 12 digit
ISIN is a 12 digit number that is used to identify securities like stocks and bonds. It is a unique code which identifies any security. Its structure is defined in ISO 6166.
Purpose– to uniquely identify a security.
Number of digit– 12
Components of ISIN
First two characters– it is alphabetic, and represents the issuing country.
Next nine characters– are alpha-numeric and represent the security.
Last character– check digit. (numeric).
Aadhaar Number- 12 digit
Aadhaar is a 12 digit random number, which is alloted by UIDAI to residents of India.
A person who opts for Aadhaar is issued an aadhaar card for which the following data of the person is captured- Ten Fingerprints, Two Iris Scans, and Facial Photograph.
Universal Account Number (UAN)- 12 digit
Employees’ Fund Organization (EPFO) allots UAN to all the contributory members of EPFO and disseminated through the employers. It is a 12 digit number.
Purpose: It is possible that a person has worked in more than one organisation where he/she was contributing to the EPFO. Now, he/she will have a single UAN throughout. This UAN will help the member to assemble all his PF accounts associated with multiple organizations at one place.
Number of digits– 12.
Institution Identification Number (IIN) by NPCI- 6 digit
IIN is a unique 6 digit number. It is issued by National Payments Corporation of India (NPCI) to every bank participating in the Aadhaar Payment Bridge (APB) System.
Purpose– It is used to uniquely identify a bank to which the APB transaction has to be routed in the Aadhaar Payment Bridge (APB) System.
Number of digit– 6