Codes used for various transactions

List of codes used for various transactions and cheque clearing in banks

IFSC (Indian Financial System Code)  

  • IFSC or Indian Financial System Code is an alpha-numeric code that uniquely identifies a bank-branch participating in the NEFT system. 
  • This is an 11-digit code with the first 4 alpha characters representing the bank, the 5th character is 0 (zero) and the last 6 characters representing the branch. 
  • All the banks have also been advised to print the IFS code of the branch on cheques issued by branches to their customers.
  • IFSC is used by the NEFT system to identify the originating / destination banks / branches and also to route the messages appropriately to the concerned banks / branches.

MICR (Magnetic Ink Character Recognition) :

  • MICR (Magnetic Ink Character Recognition) is a technology used to verify the legitimacy or originality of paper documents, especially cheques.


  • Special ink, which is sensitive to magnetic fields, is used in the printing of certain characters on the original documents.
  • The MICR code is a 9-digit code, which is printed at the bottom of a cheque and in the right-hand side of the cheque number. A MICR code is unique to each bank branch. Thus, a MICR code can be used to uniquely identify any bank branch. It also uniquely identifies a bank and a branch participating in an Electronic Clearing System (ECS).


MMID (Mobile Money Identifier) Code:

  • Mobile Money Identifier is a 7 digit number, issued by banks. 
  • MMID is one of the input which when clubbed with mobile number facilitates fund transfer. Combination of Mobile no. & MMID is uniquely linked with an Account number and helps in identifying the beneficiary details.
  • Different MMID’s can be linked to same Mobile Number.


SWIFT (Society for Worldwide Interbank Financial Telecommunication) Code:

  • A SWIFT code is an international bank code that identifies particular banks worldwide. It's also known as a Bank Identifier Code (BIC).
  • Bank uses SWIFT codes to send money to overseas banks. A SWIFT code consists of 8 or 11 characters.
  • The robustness of the message format design allowed huge scalability through which SWIFT gradually expanded to provide services to the following:
  1. Banks
  2. Brokerage Institutes and Trading Houses
  3. Securities Dealers
  4. Asset Management Companies
  5. Clearing Houses
  6. Depositories
  7. Exchanges
  8. Corporate Business Houses
  9. Treasury Market Participants and Service Providers
  10. Foreign Exchange and Money Brokers

For example: Bank's SWIFT code is “CSTAAU2B”. You’ll need to give this code to anyone sending money to you from overseas. The code is made up of letters and numbers as follows: CSTA – Bank code (4 digits) 

  1. AU – Location Code (2 digits) 
  2. 2B – Country Code (2 digits) 


ATM (Automated Teller Machine)

An       Automated         Teller    Machine              (ATM)   is             an           electronic telecommunications device that enables customers of financial institutions to perform financial transactions, such as cash withdrawals, deposits, transfer funds, or obtaining account information, at any time and without the need for direct interaction with bank staff.

Note: State having highest number of ATM’s: Maharashtra; India’s first talking ATM’s: Ahmedabad, Gujarat

Types of ATM

Different Types of ATM are as Follows: 

  1. Onsite ATM - Within the premises of bank
  2. Offsite ATM - Outside the bank premises (Shopping Malls, shopping markets, airports, hospitals, business areas etc) 
  3. White Label ATM - Provided by NBFC
  4. Green Label ATM - Provided for Agricultural Transaction
  5. Pink label ATM - Women Banking (Launched by SBI) 
  6. Worksite ATM - Is located within the premises of an organisation and is generally meant only for the employees of the organisation.
  7. Orange Label ATM - Provided for Share Transactions
  8. Yellow Label ATM - Provided for E-commerce
  9. Brown label ATM – Hardware and the lease of the ATM machine is owned by a service provider, but cash management and connectivity to banking networks is provided by a sponsor bank.
  10. Cash Dispenser -Allows only cash withdrawals, balance enquiry and mini statement requests, Cash Dispenser (CD). 
  11. Mobile ATM - refers to an ATM that moves in various areas for the customers. Few private banks have introduced ATM on wheels.


Plastic Money

Plastic Money consists in a shape of Master card, debit card, credit card and ATM card. The basic purpose of plastic Money is to facilitate the People easily and quickly in case of Cash/Money Transaction.

Technology for banking has simplified banking and reduced time it consumed to process transaction by introducing the following and there are various types of plastic money:


1. Debit cards & Credit Cards

  • A debit card (also known as a bank card, plastic card or check card) is a plastic payment card that can be used instead of cash when making purchases. It is similar to a credit card, but unlike a credit card, the money comes directly from the user's bank account when performing a transaction.
  • Debit cards are issued by banks and are linked to a bank account. Whereas Credit cards are issued by banks / other entities approved by RBI.
  • Debit cards can be used for shopping, paying for fuel, grocery, withdrawing money from the automated teller machine. The credit cards are used for purchase of goods and services at Point of Sale (POS) and Ecommerce (online purchase) / through Interactive Voice Response (IVR) /Recurring transactions/ Mail Order Telephone Order (MOTO). 


2. Pay bills online

  • This technology is set up just to pay bills online; the reason behind setting up this technology is minimizing the use of paper and going green by simply transferring money online to the beneficiary be it your electricity bill, gas bill, phone bill, DTH recharges, etc, most of your bill payments can be made on line through internet and wire transfers. 
  • Using this facility, you can keep a track on your account, estimate the money you consumer monthly, analyze your budget and also plan your savings online by seeing various investment options available for you online.


3. CORE (Centralized Online Real-time Exchange) banking

  • CORE banking is anywhere banking with the same bank be it any location.  All this can be done without sending the cheque outstation for clearing the transaction. This saves on time and money for sending the cheque for clearing to another city.
  • Banking software and network technology allow a bank to centralize its record keeping and allow access from any location.
  • For example, if you have an account with ABCD Bank LTD, in X location or X branch you can also process your transaction in Y location or Y branch.

4. Mobile banking

  • Mobile banking is a service provided by a bank or other financial institution that allows its customers to conduct financial transactions remotely using a mobile device such as a smartphone or tablet
  • Unlike the related internet banking it uses software, usually called an app, provided by the financial institution for the purpose. Mobile banking is usually available on a 24-hour basis.
  • Transactions through mobile banking may include obtaining account balances and lists of latest transactions, electronic bill payments, and funds transfers between a customer's or another's accounts.
  • It reduces the cost of handling transactions by reducing the need for customers to visit a bank branch for non-cash withdrawal and deposit transactions.


5. POS (Point-Of-Sale) 

  • A Point-Of-Sale (POS) or point of purchase (POP) is the time and place where a retail transaction is completed. After receiving payment, the merchant may issue a receipt for the transaction, which is usually printed but is increasingly being dispensed with or sent electronically.
  • Any form of payment can be used, such as cash, debit cards, credit cards, mobile payments and even Bitcoin.



National Payments Corporation of India (NPCI) is an umbrella organization for all retail payments system in India, which aims to allow all Indian citizens to have unrestricted access to e-payment services. NPCI is a not-for-profit organisation registered under section 8 of the Companies Act 2013.

  1. It was set up in December, 2008 with the guidance and support of the Reserve Bank of India (RBI) and Indian Banks’ Association (IBA).  The core objective was to consolidate and integrate the multiple systems with varying service levels into nation-wide uniform and standard business process for all retail payment systems.
  2. NPCI has ten core promoter banks namely, State Bank of India, Punjab National Bank, Canara Bank, Bank of Baroda, Union Bank of India, Bank of India, ICICI Bank, HDFC Bank, Citibank and HSBC.
  3. Its Headquarters is located in Mumbai, Maharashtra. MD & CEO of NPCI is Dilip Asbe