Bank Code Verified

402-784, BSB Number for Commonwealth Bank, Kiama, NSW

BSB Number: 402-784

Bank: Commonwealth Bank

Financial Institution: CST

Address: 2 Manning Street

City: Kiama

State: NSW

Postcode: 2533

System: PEHto BSB numbers:

In the world of banking, BSB numbers play a crucial role in identifying and routing funds. These numbers may seem insignificant at first, but they are the backbone of the banking system, ensuring that your money ends up in the right place.

What are BSB numbers? BSB stands for Bank State Branch, and it is a unique identifier assigned to each branch of a financial institution in Australia.

These numbers are six digits long and are used primarily for domestic money transfers within Australia. The importance of BSB numbers in the banking system:

BSB numbers are vital for several reasons.

First and foremost, they help prevent cases of misdirected funds. Just imagine the chaos that would ensue if your hard-earned money ended up in someone else’s account! BSB numbers ensure that such mishaps are kept to a minimum.

BSB numbers are also used for seamless processing of funds. When you initiate a transfer, whether it’s paying your bills or sending money to a friend, the BSB number helps the bank identify the correct branch and route the funds accordingly.

This process is not only efficient but also ensures that there are no delays or errors in transferring your money. Identification and routing of funds with BSB numbers:

When you provide your BSB number to the sender or recipient of funds, you are essentially giving them the key to identifying your branch accurately.

This number tells the banks where the money needs to be sent or received. It serves as the first point of reference in the transfer process.

To better understand how BSB numbers are used for identification and routing, let’s take a closer look at an example. Suppose you have a BSB number of 402-784, and you want to receive a payment from a friend.

First, your friend will need to input your BSB number into their banking app or provide it to their bank teller. The bank will then refer to its vast database, which contains all the BSB numbers and their corresponding branches.

Upon finding the BSB number 402-784, the bank will identify that it belongs to the Commonwealth Bank branch in Kiama, New South Wales. With this information, the bank knows exactly where to send the money.

Once the money is sent, the BSB number again comes into play when your bank receives the funds. It checks the BSB number, ensures it matches with an existing branch in their database, and routes the money to your account accordingly.

In summary, BSB numbers are a vital part of the banking system, acting as a unique identifier for branches and ensuring the correct routing of funds. They provide a level of security and efficiency that allows for hassle-free money transfers within Australia.

So, the next time you make a payment or receive funds, remember the importance of the little six-digit BSB number on your bank statement. Topic 3: PEH System

In the world of banking, there are various systems and protocols in place to ensure the smooth and secure transfer of funds.

One such system is the PEH system, which stands for Payments and Electronic Households. This system is used by financial institutions to process electronic payments and handle transactions efficiently.

The PEH system is directly related to BSB numbers. When you provide your BSB number to initiate a transfer, the PEH system comes into play.

It acts as a central authority that processes and verifies the BSB numbers entered by customers during transactions. Once you input the BSB number, the PEH system checks its validity by matching it with the database of financial institutions and their corresponding branches.

If the BSB number is valid and matches a known branch, the PEH system allows the transaction to proceed. If, by any chance, the BSB number is invalid or doesn’t match any financial institution, the transaction will be declined or flagged for review.

The PEH system’s role is crucial in maintaining the integrity and security of the banking system. By validating BSB numbers, it ensures that funds are directed to the correct branches and minimizes the risk of errors or fraud.

Topic 4: Understanding BSB number structure

To fully comprehend the BSB number system, it’s essential to understand its structure and the significance of each digit within the number. BSB numbers consist of six digits, which can be divided into three sections: the bank code, the state, and the branch code.

The first two digits of the BSB number represent the bank code, indicating the financial institution associated with the branch. For example, in the BSB number 402-784, the bank code is “40,” which corresponds to the Commonwealth Bank.

The third digit of the BSB number signifies the state in which the branch is located. Each state in Australia is assigned a specific number for identification purposes.

Continuing with the previous example, the state code for New South Wales (NSW) is “2.”

The remaining three digits represent the branch code, indicating the specific branch within the financial institution. In our example, the branch code is “784,” signifying the Commonwealth Bank branch in Kiama, NSW.

By breaking down and interpreting the BSB number (402-784), we can understand that it belongs to the Commonwealth Bank, located in Kiama, NSW. This breakdown allows for efficient routing and identification of funds during transactions within the banking system.

The structure of BSB numbers helps streamline the process of transferring funds. Financial institutions can maintain a comprehensive database that maps BSB numbers to specific branches, ensuring accurate routing and delivery of funds.

In conclusion, BSB numbers play a significant role in the banking system, facilitating the identification and routing of funds. The PEH system, along with BSB numbers, ensures the smooth and secure processing of electronic payments.

Understanding the structure and significance of BSB numbers allows for seamless transactions, benefiting both customers and financial institutions alike.

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