Karnataka Bank Limited was incorporated on 18th February 1924 at Mangaluru, Karnataka state, India. Today, the bank is recognized as a leading A class scheduled commercial bank in the Indian banking sector. The financial institution took shape in the aftermath of patriotic zeal that overwhelmed the country during the freedom movement of India in 20th century. Later, it got merged with Sringeri Sharada Bank Ltd., Bank of Karnataka, and Chitradurga Bank Ltd. Holding the experience of over 9 decades in the banking sector for providing best in class financial services, the bank remarks an immense presence in the market with a network of 781 branches across 22 Indian states and 2 Union Territories.
The financial institution is managed by skilled and dedicated professional and thus, holds a strong customer base with over 8.2 million active users. Karnataka Bank brings the range of financial products and services designed to meet every individuals need. The bank also offers internet banking and mobile banking services to its account holders for the convenience and comfort of banking services. However, to access the mobile and internet banking, you need to know the Karnataka Bank IFSC code, which supports to highly secured online transactions.
IFSC code is an Indian Financial System Code that helps the RBI (Reserve Bank of India) to identify the participating banks in the electronic fund transfer methods like NEFT, RTGS, and IMPS. Karnataka IFSC code is an 11 digit alphanumeric unique identity code, where, the first four characters represent the name of the bank, the fifth character remains 0 (reserved for future use), and the remaining six characters denote the unique Karnataka bank branch code.
Well, as the technology is advancing day by day, the risk of fraudulent is also increasing simultaneously. Therefore, to eliminate the risk of manual error and counterfeit during the banking transactions, RBI passed the guidelines which mentions that it is mandatory for every bank branch to have a unique identity code. This unique IFSC code helps RBI to easily identify the participating bank branch, and in case of any counterfeit, the culprit can be found easily.
To conduct any electronic banking transactions, you need Karnataka Bank IFSC code because it helps the RBI to monitor the entire banking transactions without any manual errors. This unique identity code aid the RBI to track, oversee, and maintain the data of all financial transactions that are carried through an electronic fund transfer method namely, NEFT, RTGS, and IMPS. Electronic banking transactions cannot be initiated unless the IFSC code of the beneficiary is not provided along with the other mandatory bank account details.
Karnataka Bank ltd. IFSC code plays an important during the fund transferring transactions. Online fund transfer methods are concerned fundamentally with inter-bank money transfer; though, the transaction takes place on a different platform. However, the common thread in both offline and online methods is the bank IFSC code system, which is a hypothetical plaque to identify participating bank branch for the confirmation that the funds has been routed to the correct destination.
For example, the IFSC code for the Rohit Nagar Karnataka Bank Branch of Bhopal is KARB0000947. Here,
a. KARB represent the name of the Karnataka bank,
b. The 5th character is zero, which is reserved for future use, and
c. The remaining six digits symbolize the unique bank branch code
When a fund transfer transaction is processed on an electronic platform, sender has to provide the beneficiarys bank account number and branch-specific IFSC code along with other details like name of the beneficiary and the amount to be transferred. Once all the information is provided, RBI processes the transaction by identifying the beneficiary bank branch and bank account number and makes sure that the funds are credited to the correct destination without any errors.
In addition, the Indian Financial System Code can also be used while purchasing insurance and mutual funds through net banking. Account holders can find IFSC Code for Karnataka bank branch on their passbook and cheque book. Also, you can check all Karnataka Bank branches list with IFSC codes at Applykaroo.com.
For conducting any fund transfer method on electronic platform, you will be required to provide beneficiary banks unique identity code. Most commonly used online fund transfer methods are NEFT, RTGS, and IMPS. Choosing electronic fund transfer methods brings down the possibilities of manual errors during the transaction because the fund transfer operations are authorized with accurate bank details.
NEFT : National Electronic Funds Transfer, NEFT, is a country-wide money transfer payment system that facilitates one-to-one fund transfer. Under this method, individuals can send money from any bank branch to any other bank account on electronic platform. However, the bank branch should be registered with NEFT system. To transfer funds using NEFT, the remitter is required to provide the beneficiary name, IFSC code, bank account number and account type. All NEFT transactions are settled batchwise. On weekdays, there are 12 transaction batches settled between 8 am to 7 pm on weekdays (Monday to Friday) and has only 6 transaction settlement batches from 8 am to 1 pm on Saturdays. Basically, there is no lower limit of the transaction.
RTGS : Real Time Gross Settlement or RTGS is the fastest transaction method for high value fund transfers. The funds are transferred and credited to recipients bank account immediately. The details required for Karnataka Bank RTGS are IFSC code, name of payee, bank account number, and transaction value. As the fund settlements are made in real time, the recipient does not have to wait longer to get the credit. There are certain other benefits of RTGS method which include:
a. Speedy transfers in real time
b. No geographical restrictions and thus, the transactions can be made within any geographical boundary
c. Convenient fund transfers as you can complete the transaction right from your home or office
However, there are certain conditions such as minimum transaction limit is Rs.2 lakh, though; there is no upper limit for the transaction. But, when Karnataka bank RTGS transactions are done on net banking platform, the maximum transaction value is Rs.25 lakh per day per customer ID.
IMPS : Immediate fund transfer system, or simply IMPS, is a fund transfer method where the funds are credited instantly to the beneficiary account. Also, it does not have any restriction to make the transactions between the set time slots or batches and thus, the fund transfer operations can be made 24*7 on a real-time basis. However, one cannot initiate IMPS, unless Karnataka bank IFSC code is been provided.
MICR is a Magnetic Ink Character Recognition technology. The primary need for exploring the Karnataka bank MICR code is to authenticate the legality of the transactions. MICR is a 9 digit character which can be easily found at the bottom of every cheque leaf. The first three digits of the MICR code stands for the city code, the next three digits represent the bank code, and the last three digits signify the bank branch code. Thus, both Karnataka bank IFSC and MICR code serves the same agenda but, both operate in different format. The MICR code speed ups the cheque clearance process by making it easy for RBI to recognize the participating bank branch. Also, the RBI is determined to reduce paper-based cheque clearing process by introducing MICR- Cheque Processing Centres that will fasten the cheque clearance process by 95 per cent of volume and value of cheques processed in the country.
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