If you are a young professional new to the world of managing your own finances, you have come to the right place. We will discuss some of the essentials here. The first of these is linking your bank account to your Aadhaar Card. The Aadhaar link to bank accounts has become a cornerstone of financial inclusivity, allowing for targeted subsidy delivery and transparent transactions.
By associating aadhaar link bank account, institutions ensure that individuals can seamlessly access various government benefits. This linkage empowers citizens, promotes financial literacy, and strengthens the banking system’s ability to serve diverse communities efficiently. The symbiotic relationship between Aadhaar and bank accounts underscores the transformative power of technology in fostering financial empowerment and inclusive growth.
Benefits of Linking Aadhar to Bank Account
The Aadhaar card is a primary identity certificate. Therefore, it is an essential document to link with your bank account to avail all services and unlock all benefits and features to avail services.
Once your bank account and Aadhaar are linked, you can take advantage of direct credit on government subsidies for items such as sugar, kerosene, LPG, and other items. Aadhaar-enabled accounts are typically seen as secure as the government-approved information is available through the aadhar.
Assists with the KYC procedure. It refers to “Know Your Customer” which is a mandatory process to access banking services. In the procedure, linking your bank account to your Aadhar card is one of the major steps. By linking your card in advance, you save both time and effort.
Allows various government welfare grants, pensions, scholarships, and other awards to be directly credited. Residents are allowed to access their accounts from any location in the nation.
How To Link Your Aadhar Card
· Enter your customer ID and password.
· Search for the “Aadhaar Seeding” option after you have logged in.
· Click on the “Aadhaar Seeding” option to begin filling in your Aadhaar Card details.
· Submit the required information to complete the procedure.
There are several different ways you can complete this action. Options such as mobile banking, SMS, ATM, and phone call are also available. You can also visit your nearest bank branch. Visit your bank’s website to learn more.
What is the MICR Code of Bank?
Now it is time to take a look at the MICR (Magnetic Ink Character Recognition) Code. Each bank branch is given a unique Code by the Reserve Bank of India (RBI). You can find this code on each cheque leaf in your cheque book. It is the magnetic ink code bars at the bottom. This nine-digit code was introduced by the RBI to ensure secure and efficient payments. Bankers can locate bank locations and expedite the cheque-clearing process by using the MICR Code.
When utilising NEFT, IMPS, and RTGS for financial transactions, the MICR Code is crucial. It is also usually required when submitting application documents for financial products such as SIPs, lump sum mutual funds, and investment portfolios. This is because the MICR code serves as a barcode for banks involved in any transaction under the Electronic Clearing System (ECS) credit. In the banking system, it is used to verify the authenticity and validity of paper-based documents.
Layout of MICR Code:
· The first three numbers represent the city.
· The bank code is represented by the next three numbers.
· The branch code is represented by the final three numbers.Now you should know how to link Aadhaar with a bank account and what is micr code of bank. Both these concepts should help you better understand the system and manage your finances. Linking your Aadhaar card to your bank account is important to receive benefits and make hassle-free transactions. Whereas, MICR Code is important to legitimise cheques and other paper-based bank work.