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Banking online classes:
}There are different types of banking to carry out different functions in the bank according to the need of the customers.
Let us discuss them in detail:

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Important Codes & Types of Banking


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    1. Important Codes & Types of Banking

    2. Important Codes & Types of Banking Codes like IFSC, MICR and SWIFT are very much useful to identify any bank branch in India that participates in NEFT, Electronic clearing scheme & for inter-bank communication purpose to convey important messages to other banks. There are different types of banking to carry out different functions in the bank according to the need of the customers. Let us discuss them in detail:

    3. Important Codes & Types of Banking • IFSC (Indian Financial System Code): • Indian Financial System Code (IFSC) is an alpha-numeric code that uniquely identifies a bank-branch present in our country. • It is an 11 digit code with the • First 4 alpha characters representing the bank • The 5th character is 0 (zero) & • The last 6 characters representing the particular bank branch. • For example - PNBN0014872 • First 4 characters PNBN refers to Punjab National Bank. • 0 is a control number. • Last six characters (014872) represent the particular branch.

    4. Important Codes & Types of Banking • MICR – Magnetic Ink Character Recognition: • MICR is a 9-digit numeric code that uniquely identifies a bank branch participating in electronic clearing scheme. • It is used to identify the location of a bank branch. • First 3 characters refer to the City • Next 3characters represent the Bank • Last 3 characters refer to the Branch • It is allotted to a bank branch & is printed on the MICR band of cheques. MICR is used for electronic clearing of cheques.

    5. Important Codes & Types of Banking • SWIFT Code: Society for Worldwide Interbank Financial Telecommunication: • India was the 74th Nation to join the SWIFT Network. • SWIFT Code is a standard format of Bank Identifier code. • This code is used particularly for interbank transfer of money between banks & majority of FOREX related message are sent to correspondent banks abroad with the help of SWIFT code. • SWIFT Code consists 8 or 11 character when the code is 8 digits, it refers to the primary office. • 4 digits – Bank code • 2 digits – Country code • 2 digits – Location code • 3 digits – Branch code (optional)

    6. Important Codes & Types of Banking Types of Banking: Para banking- When Bank provides banking services except the general banking facility is known as Para banking. Offshore Banking- Banks which accepts currencies of all other countries. This type of banking is known as Offshore Banking. Retail Banking- Retail banking is banking in which division of a bank directly deals with retail customers.

    7. Important Codes & Types of Banking Wholesale banking-Wholesale banking includes the services provided by banks to organizations such as large corporate clients, mid-sized companies, real estate developers& investors, international trade finance businesses etc. Narrow Banking- When banks invest its money in Govt. securities instead of investing in share market to avoid risk is known as Narrow Banking. Green banking–The concept of Green Banking was introduced to promote environmental-friendly practices& reducing the carbon footprint from day to day banking services.

    8. Important Codes & Types of Banking Universal Banking–The concept of Universal Banking was recommended by H Khan Committee which allows financial institutions to undertake all types of banking or development financing activity in compliance with RBI, Govt. & related legal Acts. Islamic Banking –The concept of Islamic Banking is new in India. Islamic bank is a deposit-accepting banking institution whose scope of activities excludes borrowing & lending money on interest.