Significance of UTR number in financial transactions

UTR number is the key factor when it comes to identification in the case of financial transactions, where every digit and code holds some significance. Whether you are a seasoned investor, an accountant or simply managing your finances, understanding the essence of UTR numbers is crucial.

Let's explore the mysteries surrounding the UTR number, its definition, significance and practical applications.

What is a UTR number?

UTR full form is Unique Transaction Reference. Think of it as a digital fingerprint assigned to each financial transaction. This alphanumeric code serves as a unique identifier, differentiating one transaction from another in the vast sea of monetary movements. A UTR number is generated whenever you make a financial transaction, to represent the essence of that particular transaction.

Understanding UTR number

Now that you know the UTR number meaning, it is important to understand that it gives transactions uniqueness and facilitates easy tracing. A UTR number is generated each time you transfer payment from one bank to another using RTGS or NEFT.

UTR number in bank transactions is generally 16 digits long for NEFT and 22 characters long for RTGS. The UTR number incorporates the bank's code, transaction type, channel, date and sequence number.

This number facilitates seamless tracking and reconciliation of transactions, ensuring transparency and accountability in financial dealings.

Use of UTR number

Transaction tracking: One of the primary purposes of a UTR number is to track transactions efficiently. Whether monitoring payments or verifying deposits, having a unique reference for each transaction streamlines the process and reduces errors.
Accounting purposes: In the accounting world, being exact is very important. UTR numbers play a vital role in maintaining accurate financial records. They help categorise transactions, prepare financial statements and easily conduct audits.
Tax purposes: UTR numbers are like a map for tax auditors. They help them track if the right amount has been earned and taken out. UTR numbers ensure compliance with tax regulations and mitigate risks by providing a transparent record of financial transactions.
Proof of payments: UTR numbers are concrete evidence of transactions as valid proof in disputes or discrepancies.

How to know your UTR number

1. Bank statements or passbooks:

The UTR number is typically mentioned in your statements or passbooks accompanying each transaction.

2. Internet banking:

Most banks, including Axis Bank, offer Internet Banking facilities to access detailed transaction histories with just a few clicks. Log in to your Internet banking portal, go to the transaction history section, and voila, you will find all your UTR numbers there easily.

3. Mobile banking:

With the ease of mobile banking apps, managing your finances has never been more convenient. Simply use your smartphone, open your banking app, and search your transaction history. Within seconds, you will discover a world of UTR numbers associated with your recent transactions right at your fingertips.

4. Email or SMS Notifications:

Banks often send transaction alerts via email or SMS, containing essential details, including the UTR number. Keep an eye on your inbox or messages for any notifications from your bank regarding recent transactions. You can effortlessly retrieve your UTR number and stay informed about your financial activities.

Also Read:What is digital payment? - Overview, methods & benefits

Conclusion

UTR number is the thread that binds everything together with transparency, accountability and traceability, ensuring a seamless way of checking finances. By understanding the meaning of UTR numbers and knowing how to access them, you empower yourself to navigate the complex landscape of financial transactions with confidence and clarity. So, the next time you initiate a transaction, remember to look for the UTR number.

Disclaimer: This article is for information purpose only. The views expressed in this article are personal and do not necessarily constitute the views of Axis Bank Ltd. and its employees. Axis Bank Ltd. and/or the author shall not be responsible for any direct / indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information. Please consult your financial advisor before making any financial decision.