How Cheques Works?

Cheque is a banking instrument that can be used to transfer some one fund physically without carrying the bank notes. It is the best replacement of the bank notes.

What Cheques Consist of?

Cheque consists of different section that holds different meaning and can be used to find that it wanted to address. So the following are the details that are printed on the cheque slip-

• Bank Emblem- The Logo Of the Bank
• Bank IFSC Code- Unique 11-digit Alpha Numeric code used to find the bank branch.
• Bank MICR Code- Magnetic Ink Character Recognition Code to ease the processing the cheque  
• Account Payee Name
• Amount in letters
• Amount in number

How Cheques are Processed?

Cheques are processed when you deposit the cheque in the bank. The bank teller will accept your cheque along with the form filled with it. Let’s say you got your cheque from bank SBI and you have an account in Bank Canara Bank. So you will Deposit the cheque n the Canara bank along with the form then the Canara Bank will send the bank to SBI to clear it which then will be debited to your account from the person account who wrotethe cheque to you. It usually takes 2 days to get it cleared but now, the process is fastened up and the bank transfers the money right away.

How MICR Code is Used In Cheque?

MICR Code is a 9-digit Code which is unique to every bank branch. This is used to find the bank branch based on the location by the clearing house. Each 3 digit in the MICR Code contains some sort of information that tells about the bank branch.

First 3 digits is the city code followed by 3 digit bank code and then bank branch code. For example- SBI Mumbai Main Bank Branch has a MICR Code- 400002010, “400”-city code, “002”- bank code and “010”-branch code.

How SBI Bank Became the Biggest Bank in India

SBI is the largest bank in India, in terms of market capitalization, revenue, Branches which is around 27K+, ATMs, Offices, employees.  It is formed in with the amalgamation of Bank of Calcutta + Imperial Bank of India + State Bank of India which got nationalized on 02-June-1956. After these amalgamations, other Subsidiary banks of SBI merged into the bank to make it bigger. The list of the merger of the other banks is big and are as follows-

• State Bank of Jaipur 
• State Bank of Bikaner 
• Bank of Bihar
• National Bank of Lahore
• Krishnaram Baldeo Bank
• Dukan Pichadi
• Bank of Cochin
• State Bank of Travancore
• State Bank of Saurashtra
• State Bank of Indore
• State Bank of Hyderabad
• State Bank of Mysore
• State Bank of Patiala

SBI Branches in India

There are a total of 26,284 in all 36 states and union territories. SBI has a headquarter branch in Mumbai, Maharashtra. The current Managing Director of the Bank is Rajnish Kumar who has been with SBI from the year 1980 when he joined the SBI as a PO.

SBI Branches Internationally

• SBI (Mauritius) Ltd
• SBI Sri Lanka
• SBI operates as INMB Bank, Nigeria
• SBI Nepal
• Commercial Bank of India, SBI owned in Moscow, Russia
• PT Bank Indo Monex, SBI owned In Indonesia
• SBI Shanghai 
• Giro Commercial Bank, Kenya SBI owns
• SBI branch in Seoul, South Korea

What are the Services Offered by the State Bank of India?

SBI is a Public sector Bank owned by the Government of India and provides banking services to their customers. The services include Saving Account, RD account, FD account, Current Account etc. Apart from being the Banking service provider the SBI also provides other services that are as follows

• State Bank Of India
• SBI Capital Markets Ltd
• SBI Funds Management Pvt Ltd
• SBI Factors & Commercial Services Pvt Ltd
• SBI Cards & Payments Services Pvt. Ltd. (SBICPSL)
• SBI DFHI Ltd
• SBI Life Insurance Company Limited
• SBI General Insurance

The conclusion of SBI Achievement over the years

SBI is the largest bank in India with 27K + bank branches all over the world which includes many foreign offices. To handle such a huge number of branches SBI has to recruit the staff and hence, holds the title as one of the biggest employers in India. Also, with such a huge number of branches, the SBI also has the largest SBI Bank IFSC Codes that is used to transfer money.

 Source: Ask Bank IFSC Code