LOCATE ANY BANK BRANCH IN INDIA
Regional Rural Banks (RRBs) were established under the provisions of an Ordinance passed on September 1975 and the RRB Act 1976 on the recommendations of the M. Narasimham Working Group with a view to providing sufficient banking and credit facilities to agriculture and other rural sectors. Thus, RRBs were a low-cost Bank designed to cater to the needs of small and marginal farmers, rural artisans, petty traders etc., who operate in rural areas and bring them into the economic mainstream, as 70% of the Indian population is of rural orientation. The development process of RRBs started on 22nd October 1976 with the formation of the first RRB in the country viz Prathama Bank (sponsored by Syndicate Bank) with an authorized capital of Rs. 5.00 Crore. The Regional Rural Banks are owned by the Central Govt, State Govt and Sponsor Bank in the ratio of 50:15:35 respectively.
RRBs are recognized by law and they have legal significance. The Regional Rural Banks Act 1976, Act No. 21 of 1976 [9 February 1976] reads : "For the incorporation , regulation and winding up of Regional Rural Banks with a view to developing the rural economy by providing , for the purpose of development of agriculture, trade, commerce, industry and other productive activities in the rural areas, credit and other facilities, particularly to the small and marginal farmers, agricultural laborers, artisans and small entrepreneurs, and for matters connected therewith and incidental thereto".
In Karnataka state, Syndicate Bank had sponsored four RRBs, namely Malaprabha Grameena Bank, Bijapur Grameena Bank, Varada Grameena Bank and Netravathi Grameena Bank. RRB s are going through a process of amalgamation and consolidation since 2005. Thus, these four RRBs were amalgamated to form the KARNATAKA VIKAS GRAMEENA BANK by a Government of India Notification dated 12th September 2005. The single entity that so emerged now operates in the nine districts of Bagalkot, Belgaum, Bijapur, Dakshin Kannada, Dharwad, Gadag, Haveri, Udupi and Uttar Kannada catering to the financial needs of the people in these districts.
What is IFSC Code
IFSC is short 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 11 character code helps identify the individual bank branches that participate in the various online money transfer options like NEFT and RTGS.
How to find IFSC Code?
Ways to find IFSC codes
- IFSC code can be found on cheque leaf and bank passbook of the respective bank.
- Banks and respective branch list of IFSC codes can be obtained from Reserve Bank of India’s website.
- The IFSC code of a particular bank can also be found on the banks’ official website.
Benefits of IFSC Code
Benefits of IFSC Code are :
- Helps to identify a Bank and its respective branch
- Eliminates errors in the process of fund transfer
- Transfers done with IFSC such as NEFT, RTGS and IMPS are accurate
What is MICR Code
MICR or Magnetic Ink Character Recognition Code is a 9 digit code used for faster processing of cheques. MICR number is also unique for every bank branch, hence it helps in uniquely identifying the bank and branch participating in an Electronic Clearing System (ECS). MICR Code like IFSC is a combination of 3 essential components:
- The first 3 digits represent the city code.
- The middle 3 represent the particular bank code.
- The last 3 digits represent the specific branch code
Benefits of MICR Code
Benefits of MICR Codes are:
MICR code enables efficient, quick and error-free processing of cheques. This is possible with magnetic ink, reading machines and technology used in MICR.
Difference between IFSC and MICR code
ink character recognition code (MICR) is a technology that enables faster
processing of cheques by recognizing unique characters printed on the cheque.
MICR consists of a 9 digit code. The
first three digits of the MICR code represent the city, the next three give the
bank code and the last three digits denote the branch of the bank. Similar to
an IFSC code, every branch of a bank has a specific MICR code. While IFSC is
used for online fund transactions, MICR is used for cheques.
Let’s understand the difference between IFSC and MICR