What does ABA transit number mean?

ABA transit number meaning in Business Dictionary

A number on a check, part of a code developed and utilized by the American Bankers Association. The transit number is used to aid the financial institutions whenever clearing the inspections, by signifying the lending company plus the Federal Reserve Bank used by that organization. This quantity is found nearby the upper right spot, and seems in the form of a fraction with a numerator and denominator. The numerator indicates the spot in which the bank is based, plus the branch quantity. The denominator comes with the initial four numbers of the routing number available at underneath remaining for the check.

ABA transit number meaning in General Dictionary

an identification quantity comprising a two-part code assigned to banks and savings organizations; the initial component shows the area together with 2nd identifies the lender it self