This is CAMPUSTIMES NIGERIA, if you have been wondering what?Banks Sort code is and you are eager to have a good idea of what it is, what it is used for and where you can find it, then continue reading this article, it contains the basic information of what?Banks Sort code is.
i will break it down in different categories so for a better understanding and i am going to brief about it, enjoy reading.
What Is Banks Sort Code
Originally, a code is the substitution of one word or phrase by another word, number, or symbol for the purpose of concealing the original word or phrase. and so,
Banks Sort code?are codes?numbers, or symbol used by the banks for the purpose of concealing the original information, sort codes are useful primarily for transfer of funds?between banks within their respective countries. Sort codes are referred to as?National Sort Code (NSC) in developed countries such as Ireland.
Brief History of Banks Sort Codes
Initially, Six-digit sort codes were introduced in the 1960s following the progression of the banking industry?towards automation.
Prior to that and to facilitate the manual processing of cheques, bank branches were allocated a ‘national code’ that is the sort code today, for the purpose of funds transfer within the different banks and within its respective countries.
These took the following format;
Sort code is a nine digits number?which identifies a particular branch of a bank, it is just unique in its way just as Bank Verification Number(BVN) is unique to each bank customer.
The first three digits are the bank?s standard code,
the next digit is the location of the bank
and the last six digits differs with the branch of that particular bank.
This is to say that?no two bank branches of the same bank, lets say Zenith bank branch in Maitama and Asokoro both in Abuja, Nigeria can ever share the same Bank sort code.
Why Do I Need A Bank Sort Code?
For those who do fund transfer from one bank to another (whether inter or intra bank transfer), sort code would be required whenever such transaction is needed.
Sort code helps in determining the source of an account,
that is the branch and location of an account number where the beneficiary?account for the funds transfer is domiciled, as in the case of e-payments.
The sort code is use to know where the account originated and it is especially used for e-payments. with the help of the bank sort code, the initiating bank then locates the beneficiary’s Bank, branch and account number then directs the fund there.
Banks Sort Codes on A cheque leaflet
Bank customers with current accounts can find their bank branch sort code on their cheque leaf.
It is the nine digit middle number printed on the MICR of every leaf on a cheque book.
see the sample of the cheque book above,
