What is the Definition of ABA Routing?

ABA routing (American Bankers Association routing) is the process in which financial institutions carry out automated financial transfers with the use of a certain bank code. The bank code is a number used to identify the financial institution.

Routing Number

The bank code the financial institution uses is called the routing number, also known as the ABA number or routing transit number. It consists of nine digits: the first four stand for the Federal Reserve Bank servicing the institution, the next four stand for the financial institution identifier and the last digit is the check digit.

Where the Routing Number Is Located

The routing number is usually located at the bottom of the check. It is almost always next to the financial account number.

History

ABA routing derives its name from the American Banking Association (ABA), the largest company representing United States banks. Since 1911, the ABA has assigned routing numbers through a series of registrars. The current one is Accuity.

Registration

To apply for a routing number, a financial institution must fill out an application and agreement form. The application process usually takes three weeks.

Retirement

A financial institution can retire a routing number by filling out a retirement form or writing a letter to the registrar. The following information should be provided: the routing number to be retired, the effective date of retirement and the active routing number that will replace the number to be retired.

References

• ABA routing definition
• Accuity