Routing number (Canada)

A Canadian routing number is a nine-digit number that identifies the specific financial institution and branch to which a payment is being directed. This number is crucial for electronic fund transfers (EFTs), direct deposits, wire transfers, and other electronic payment methods within the Canadian banking system.

The routing number is composed of two parts: a five-digit branch transit number and a three-digit financial institution number. These two numbers are often separated by a hyphen when displayed.

The branch transit number identifies the specific branch where an account is held. This part of the routing number ensures that the payment is routed to the correct physical location within the financial institution's network.

The financial institution number (also known as the bank code) identifies the specific bank, credit union, or trust company that holds the account. Each financial institution is assigned a unique three-digit code by Payments Canada.

Payments Canada, the organization responsible for the country's payment clearing and settlement infrastructure, assigns and manages routing numbers for all financial institutions operating in Canada. They ensure that each routing number is unique and that the information associated with it is kept up to date. This is essential for maintaining the efficiency and accuracy of the Canadian payments system.

Routing numbers are essential for both sending and receiving funds electronically in Canada. Providing an incorrect routing number can result in delays, rejection of the transaction, or even misdirection of funds. It is therefore crucial to verify the routing number with the intended recipient or their financial institution before initiating a transaction. Routing numbers can typically be found on cheques, online banking platforms, or by contacting the financial institution directly.