RBI/2005-06/312
Ref. DPSS (CO) No.1285/04.06.01/2005-2006
March 3, 2006
To the Chairmen/Chief Executive Officers of
all Scheduled Commercial Banks
Printing of Indian Financial System Code (IFSC)
on Cheques
As you are aware the Indian Financial System
Code (IFSC) is being used as the addressing code in user-to-user message transmission
through Structured Financial Messaging System (SFMS). Various other payment
system applications like RTGS, NEFT, etc., also use the IFSC for routing purposes.
2. We have come across instances of
difficulties being faced by corporate customers / individuals intending to remit
funds using the above applications as quite often the remitter is not aware
of the IFSC of either remitting branch or the receiving branch. Some times because
of incorrect IFSC provided by the customer for either of the branches results
in funds reaching a wrong destination branch.
3. IDRBT has issued a circular advising
banks to allot IFSC to all their branches in the format prescribed by them and
inform them so as to enable compilation of an IFSC directory. Banks are advised
to expedite the process of allotting IFSC to the branches. It has also been
decided that IFSC of the branch be printed just above the MICR band on the cheques
preferably above the serial number of the cheque. The MICR code line would continue
to be used for cheque processing. We would like to highlight that IFSC is a
unique code for a branch which can be used for RTGS / NEFT and any other applications.
4. You are requested to advise all
your controlling offices / branches accordingly and advise us of the action
taken in this regard.
Yours faithfully
(Kaza Sudhakar)
General Manager
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