An IFSC code used for electronic funds transfer in India consists of how many characters?
- A.9
- B.11
- C.13
- D.16
Correct answer
Explanation
The correct answer is B, 11. The Indian Financial System Code is an eleven character alphanumeric code that identifies a particular bank branch taking part in the electronic payment systems of the Reserve Bank of India. The first four characters are letters that name the bank, the fifth character is always the digit zero and is held in reserve for future use, and the last six characters identify the branch. Without a correct IFSC, a NEFT, RTGS or IMPS instruction cannot be routed to the right branch.
Option A, nine, is the length of the MICR code printed at the foot of a cheque, where three digits each stand for the city, the bank and the branch. Option C, thirteen, matches nothing in the Indian banking system. Option D, sixteen, is the usual number of digits on a debit or credit card. Mixing up the eleven character IFSC with the nine digit MICR is the commonest error in this question.
Read the full article: Banking Terms and Abbreviations: Full Forms and Meanings
Practice Questions
View allIn banking, the full form of RTGS is
- A.Rapid Transfer Gross Scheme
- B.Rapid Transfer Gross Settlement
- C.Real Time Gross Settlement
- D.Real Time Gross Scheme
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RTGS is the system in which a transfer instruction is settled singly and immediately, rather than being held and netted off with others.
Read the full explanation →Which of the following is an instrument of monetary policy used by RBI? I. SLR II. MSS III. Corridor
- A.I and II
- B.II and III
- C.I, II and III
- D.I and III
Show answer
All three belong to the monetary policy toolkit of the Reserve Bank of India. SLR, the Statutory Liquidity Ratio, is the part of its deposits that a bank must keep with itself in cash, gold or approved securities, and raising or lowering it changes how much a bank can lend.
Read the full explanation →Which of the following is a qualitative tool used by RBI to control money supply?
- A.Bank Rate
- B.Moral Suasion
- C.Open Market Operations
- D.Cash Reserve Ratio
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The tools of the Reserve Bank are divided into quantitative tools, which change the total amount of credit in the system, and qualitative or selective tools, which change the direction in which that credit flows.
Read the full explanation →To improve internal control of banks, Reserve Bank of India has asked all banks to do what till 30 April 2018?
- A.To connect SWIFT with its Basic Banking Solution (CBS)
- B.To connect RTGS with their Core Banking Solution (CBS)
- C.To connect NEFT with its Basic Banking Solution (CBS)
- D.To connect MICR to their Basic Banking Solution (CBS)
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SWIFT is the international messaging network over which banks send payment and guarantee instructions across borders.
Read the full explanation →What is the minimum amount that can be remitted through RTGS in India?
- A.Rupees 10,000
- B.Rupees 50,000
- C.Rupees 1 lakh
- D.Rupees 2 lakh
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RTGS was designed for large value payments, so the Reserve Bank of India fixed a floor of two lakh rupees for a single transaction and set no ceiling at all.
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