A routing number (also known as a routing transit number or RTN) is a unique identification code assigned to financial institutions that facilitates the processing and routing of electronic payments. Each bank is assigned its routing number, which is a nine-digit number that appears on the bottom left corner of checks.
Routing numbers are crucial for ensuring that funds are transferred correctly between different financial institutions. They play a vital role in the automated clearing house (ACH) network, which processes electronic payments and direct deposits. Historically, the ABA (American Bankers Association) assigned routing numbers to banks in the United States, but today, the Federal Reserve Bank manages this system.
