Bank Code Verified

063-283, BSB Number for Commonwealth Bank, Box Hill, VIC

BSB Number: 063-283

Bank: Commonwealth Bank

Financial Institution: CBA

Address: 28 Main Street

City: Box Hill

State: VIC

Postcode: 3128

System: PEHto BSB numbers

Have you ever wondered how banks identify and route funds to the correct destination? This is where BSB numbers come into play.

BSB, short for Bank State Branch, is a unique identification number assigned to each branch of a financial institution in Australia. These numbers are integral to the functioning of the banking system, ensuring that funds are accurately directed and transactions are processed efficiently.

The importance of BSB numbers in the banking system

BSB numbers serve several crucial roles within the banking system. Firstly, they help identify the specific bank and branch where an account is held.

This information is vital for routing funds correctly, especially in situations where multiple financial institutions have branches in the same area. Secondly, BSB numbers enhance the security of financial transactions.

By including the BSB number along with the account number, banks can verify the authenticity of the transaction, reducing the risk of fraud. This additional layer of verification ensures that funds are only transferred to valid accounts within the specified bank and branch.

How BSB numbers are used for identification and routing of funds

When making a payment or transferring funds, one of the key pieces of information required is the recipient’s BSB number. This unique six-digit number, combined with the account number, allows the bank to identify the correct branch and account to which the funds should be directed.

Upon receiving a transaction request, the sending bank checks the validity of the BSB number. This involves verifying that the combination of the BSB number and the account number is recognized by the recipient’s bank and branch.

If the BSB number does not match any valid bank and branch combination, the transaction is rejected to prevent the funds from being sent to the wrong destination. Once the BSB number is confirmed to be valid, the bank uses it to route the funds through the interbank settlement system.

This system ensures that money is promptly transferred between financial institutions and ultimately reaches the intended recipient. For example, let’s say you want to transfer money from your Commonwealth Bank account to a friend’s account at another bank.

In this case, you would need to provide your friend’s BSB number, along with their account number, to initiate the transfer. The BSB number is crucial for the Commonwealth Bank to route the funds correctly to your friend’s bank and ensure they end up in the designated account.

Conclusion

BSB numbers play a vital role in the Australian banking system, facilitating the identification and routing of funds. These unique numbers provide a means of securely directing transactions to the correct bank and branch.

By including the BSB number along with the account number, banks can verify the authenticity of transactions and reduce the risk of fraud. Understanding the importance of BSB numbers can help ensure smooth and secure financial transactions.

PEH System

The

PEH System, also known as the Prompt Entry of Holding (PEH), is a specific clearing system used in Australia for processing financial transactions. It is primarily used for business transactions and allows for the prompt entry of holdings in various security types, such as shares, stocks, and debentures.

The PEH system operates within the context of BSB numbers to ensure accurate and efficient processing of transactions. The PEH system is closely related to BSB numbers as it relies on these numbers to identify the financial institution and branch where the holdings are held.

When initiating a transaction through the PEH system, the BSB number is used to identify the specific bank and branch to which the holdings are to be credited or debited. This ensures that the transaction is processed correctly and that the holdings are accurately allocated.

Understanding BSB number structure

To fully grasp the significance of BSB numbers, it is essential to understand their structure and how various digits within the number convey specific information. BSB numbers are made up of six digits, which are further divided into three components: the bank code, the state code, and the branch code.

The first two digits of the BSB number represent the bank code, which identifies the financial institution. In the case of the provided BSB number 063-283, the bank code is 06, indicating Commonwealth Bank as the financial institution associated with the number.

The next two digits represent the state code, indicating the state where the specific branch is located. In this example, the state code 32 denotes the state of Victoria.

The final two digits make up the branch code, which identifies the specific branch within the financial institution. For the BSB number 063-283, the branch code is 83, signifying the Box Hill branch of Commonwealth Bank.

Interpreting the BSB number provided

Now, let’s break down the BSB number 063-283 and interpret its individual components. The bank code, 06, refers to the Commonwealth Bank.

The state code, 32, indicates the state of Victoria. Lastly, the branch code, 83, identifies the Box Hill branch.

By analyzing the BSB number, we can determine that it belongs to the Commonwealth Bank’s Box Hill branch in Victoria. Understanding this information is crucial for anyone looking to initiate a transaction or deposit funds to an account held at this specific branch.

The BSB number, when combined with the account number, allows the bank to accurately route funds and process transactions. It serves as a unique identifier and ensures that funds are correctly allocated to the desired branch and account within the financial institution.

In conclusion, the PEH system and BSB numbers work hand in hand to facilitate efficient and secure financial transactions in Australia. The PEH system relies on BSB numbers to identify the specific bank and branch when processing transactions.

Understanding the structure and significance of BSB numbers is key to ensuring accurate routing of funds and allocation of holdings. By mastering this knowledge, individuals and businesses can navigate the banking system with confidence and ease.

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