IFSC is the abbreviation for Indian Financial System Code and represents the 11-digit character that you can usually see on your bank’s cheque leaves or other bank-sponsored material.
This IFSC code helps identify the individual bank branches that participate in the various online money transfer options like NEFT and RTGS.
IFSC code is an alphanumeric code that is used to identify the particular branch of a participating bank in either of the popular electronic fund's settlement options in India, namely RTGS and NEFT.
The first four characters in the IFSC code represents the bank’s name, the fifth character is ‘0’ (Zero) and is reserved for future use, with the final six numeric/alphabetic characters represent the specific branch of the bank.
MICR stands for Magnetic Ink Character Recognition technology. It is primarily used to authenticate the originality and legality of paper-based documents in the banking system. It is majorly used on cheques.
In terms of their real-world importance, MICR stands on par with IFSC where the transfer of funds using NEFT or IMPS is concerned.
The banks use this technology to authenticate the clearance of cheques and other such documents.
MICR code is placed on the bottom strip of the cheque and includes details such as the bank code, account details, cheque number and amount, alongside a control indicator.