A Complete Guide on UTR Number
If you are part of the business world, especially part of the exporters’ realm, then UTR is a common term that will keep popping up time and again. The full form of UTR is Unique Transaction Reference. It is a unique identification number assigned to financial transactions sent to India.
UTR is essential to identify and track payments or inward remittance through electronic means or through wire transfers.
What is UTR number in banking?
As we explained above, UTR is vital for banking transactions.
It is used for the following purposes:
1. Reference: In the world of finance where businesses as well as banks have numerous transactions, it is important to have a particular reference number to track or trace transactions. The UTR number is used as a reference point and adds context to foreign inward remittance certificate (FIRC)
2. Confirmation: Often when one business makes a payment to another business, UTR is used to check if the payment has been received. This becomes especially useful when the business has numerous payments coming in and going out
3. Prevent fraud: With clear and tangible evidence of a transaction in the form of a UTR, it is easier to prevent frauds happening in terms of financial transactions
4. Audit: As a valid business in today’s world, it is crucial that any financial transaction you have with your stakeholders has a paper trail. A UTR makes it easy to track and trace payments that a business makes and receives
5. Customer service:When a customer makes a payment to a business in expectation of a service or product in return, it is critical to validate the payment, attribute it to the right order, and deliver the goods or services. Customer service representatives often struggle with customer queries around this regard and UTR numbers make it easy to provide customers with the right information
6. Operational efficiency:When you are a bank, financial institution, or a running business with numerous financial transactions, tracking the payments that have gone out and the payments received can be an operational nightmare. However, with unique transaction reference numbers and the addition of smart technology, it becomes easier to streamline operations
How to find the UTR number?
The UTR number for a transaction depends on the type and the banking method used. Here are some of the ways you can use to find the UTR number:
1. Bank statement
● Online banking offers bank statements you can view, print, or download. These statements have all the transaction details along with the UTR number
● Many banks provide printed statements, which again can be scanned to find the UTR numbers you require
2. Transaction confirmation
● Email notifications are part of your banking transactions and will have the details of the transaction, including the UTR number
● You will also get transaction confirmations through short messages on the mobile linked to your bank account, which will have the UTR number
3. Physical bank receipt
Even though it is less prevalent, people often visit the bank to complete the transaction, and the bank will provide you with a receipt with the UTR number, which you can file for later reference
4. Mobile app
The banking app on your mobile phone is another source to easily get the UTR number
5. Bank customer service
If none of these options work for you, you can access the bank’s customer service team either through the call center or directly to get the details
What does the UTR number format look like?
The format of the Unique Transaction Reference number varies according to the banking system and the country it is based in. In India, the UTR number usually consists of 22 characters for RTGS and 16 characters for NEFT, composed of numbers and letters.
This will usually include the IFSC (bank code of the sender), the payment system, the channel, the year, month, day of the transaction, and the sequence number.
However, please note that the UTR number will vary for different countries. UK has the CHAPS or faster payments, which is usually alphanumeric or USA has the wire transfer, mostly composed of numbers. However, you will notice different formats based on the bank, institution, or the specific transaction system used.
At LeRemitt, we believe the world of financial transactions should be transparent, easy, and accountable. Part of our endeavor is to provide all the requisite information and input at your fingertips to ease your way in the world of export.
