The BSB Codes or Bank State Branch codes are 6-digit codes used for identifying banks and branches in Australia. If you want to transfer payments within Australia, you will need the account number and the BSB code of the recipient. Similarly, you will have to provide your own account number and BSB to the sender. As already mentioned, there are 6 digits in this code. The first 2 or 3 digits are used as bank identifier. This part of the code is used to process both electronic and paper-based transactions. However, it is not used in the case of payment card numbering.
The BSB codes are regulated by the Australian Payments Clearing Association or APCA in Australia. It also regulates the clearance of cheques in the country. It is the APCA that assigns the code to a financial institution. The institution can then allocate the remaining digits in the BSB code to its branches. But it has to do so according to the guidelines set by the APCA.
In some cases, a financial institution may have multiple bank identifiers. This happens because of mergers or consolidation of the savings and trading operations of banks. There are tens of thousands of BSB code values currently being used.
The BSC Codes are used for a variety of payment systems which are currently used in Australia. In order for an institution to access different clearing systems, it is important that they have their own BSB. They can however also use an intermediary that has a BSB.
The general method for finding the BSB code is as following:
The first time BSB codes were introduced in the United Kingdom in the 1960s. A similar system was then introduced in Australia in the 70s. It helped in streamlining the cheque clearance system within the Australian banking system. Initially, the clearance mechanism was created only for the financial systems which were registered as banks. The cheques will usually have both the account number and the BSB code printed on them in MICR format. This helps in speeding up the process of data capture. It also makes it easier to sort and bundle cheques for forwarding to the paying bank branch for clearance.
The financial institutions that didn't have this code had to rely on other institutions with the code (as intermediaries) for accessing clearance of Payment Orders. Payment Orders are the non-banking alternatives of cheques. Today, BSB codes are widely used for electronic transactions. But their use has not been extended to the payment card numbering system.
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The BSB Codes or Bank State Branch codes are 6-digit codes used for identifying banks and branches in Australia. If you want to transfer payments within Australia, you will need the account number and the BSB code of the recipient. Similarly, you will have to provide your own account number and BSB to the sender. As already mentioned, there are 6 digits in this code. The first 2 or 3 digits are used as bank identifier. This part of the code is used to process both electronic and paper-based transactions. However, it is not used in the case of payment card numbering.Read More
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