// FAQ //
1. What is IFSC?
IFSC stands for Indian Financial System Code. It is a unique 11-character alphanumeric code
used
to identify
individual bank branches within the National Electronic Funds Transfer (NEFT), Real-Time Gross
Settlement (RTGS), and Immediate Payment Service (IMPS) networks in India.
The Reserve Bank of India (RBI) assigns the IFSC code to each bank branch to ensure secure and
efficient
electronic fund transfer transactions across the country. The code is used in routing money accurately and
preventing errors in the transfer process.
2. What is MICR?
MICR stands for Magnetic Ink Character Recognition. It is a technology used mainly in the
banking industry to
process cheques and other paper-based documents. MICR encoding allows machines to read and process
information
from these documents efficiently and accurately.
The MICR system uses special ink that contains magnetic particles, which makes the characters
machine-readable. The primary purpose of MICR is to automate the process of clearing cheques and reduce
errors
that can occur during manual processing. The MICR line on a cheque is present at the bottom.
The MICR code is specific to each bank branch, and every cheque issued by a bank branch will have the same
MICR code. This coding system is prevalent in countries like India, where cheques are still widely used for
various financial transactions.
3. What is SWIFT?
SWIFT stands for the Society for Worldwide Interbank Financial Telecommunication. It is a
messaging network,
used by banks and other financial institutions worldwide to securely and efficiently send and receive
information, particularly for international financial transactions.
Each financial institution connected to the SWIFT network is assigned a unique identifier known as the SWIFT
code or Bank Identifier Code (BIC). These codes identify the sending and receiving institutions in
the
messages.
4. What is UPI?
UPI stands for Unified Payments Interface. It is a real-time payment system and a popular
digital payment
method in India. UPI allows users to transfer funds between bank accounts instantly through a mobile
application. It was developed by the National Payments Corporation of India (NPCI) to promote
cashless
transactions and simplify peer-to-peer and peer-to-merchant payments.
5. What is IMPS?
IMPS stands for Immediate Payment Service. It is an instant interbank electronic funds
transfer
system in
India that enables customers to make real-time transactions 24x7, including weekends and holidays. IMPS was
introduced by the National Payments Corporation of India (NPCI) to provide a quick, secure, and
convenient way
to transfer funds between bank accounts.
6. What is NEFT?
NEFT stands for National Electronic Funds Transfer. It is an electronic payment system used in
India for
transferring funds between different banks in the country. NEFT allows individuals, companies, and
organizations to transfer money from one bank account to another in a secure and efficient manner.
The NEFT system operates on a deferred net settlement basis, meaning that transactions are processed in
batches at fixed times throughout the day. The settlement of funds happens in hourly batches rather than
real-time, which means the transfer may take some time to reflect in the beneficiary's account, typically
within a few hours.
7. What is RTGS?
RTGS stands for Real-Time Gross Settlement. It is another electronic funds transfer system
used
in India,
similar to NEFT, but with some key differences. RTGS is designed for high-value and time-critical
transactions, where the transfer of funds needs to be executed in real-time, on a gross basis. Unlike NEFT
payments, your money
will arrive in the recipient's account right away.
