Bank Codes in Payroll Processing with Bharat Payroll

IFSC- “Indian Financial System Code” is like a distinctive address for a bank branch. It makes sure that payroll methods that employee’s salaries are credited to the right bank accounts without any mistakes using methods like NEFT, RTGS, IMPS, etc.

The MICR- “Magnetic Ink Character Recognition” code fastens the cheque clearance process by electronically reading information encoded over it. This reduces delays and errors in credits. This gives access to funds when cheques are issued for salaries or reimbursements.

While both are bank codes, they serve different purposes:
IFSC is used for domestic transfers within India, guiding payments through NEFT or RTGS systems.
SWIFT (or BIC) is designed for international transactions, ensuring global payments land at the right bank, anywhere in the world. If your company handles cross-border payroll for global teams, SWIFT is the go-to code.

The Tan- “Tax Deduction and Collection Account Number” is necessary for tracking taxes deducted at source (TDS). An employer must have a TAN for processing TDS returns and deductions so that income tax is reported correctly to the government.

The Universal Account Number or UAN manages the Provident Fund (PF) accounts of the employees. It converges multiple PF accounts into one for making withdrawals, transfers, and even tracking contributions. Whether you change jobs or relocate, your UAN ensures your unique PF stays with you.

The Permanent Retirement Account Number (PRAN) is the unique ID for the National Pension System -NPS. PRAN ensures that pension contributions are correctly allocated to your account for payroll. This guarantees a secure financial future for employees, especially those enrolled in NPS.

The Basic Statistical Returns (BSR) Code identifies a bank branch during tax-related reporting to the Reserve Bank of India (RBI). For payroll teams, it’s vital to file TDS and other tax payments accurately. Think of it as the behind-the-scenes player that keeps your tax compliance running smoothly.