Routing Transit Number – Definition

Cite this article as:"Routing Transit Number – Definition," in The Business Professor, updated September 17, 2019, last accessed October 20, 2020,


Routing Transit Number (RTN) Definition

A routing transit number (RTN) is a code used in the United States to identify a bank or financial institution when processing funds or clearing checks. A RTN is a nine-digit code that appears at the bottom of a check or financial draft that states the bank or financial institution from which funds will be drawn. A RTN is often used in the processing of checks, it tells the processor the financial institution from which the check will be drawn.

A Little More on What is a Routing Transit Number (RTN)

RTN codes are used for electronic processing of checks, electronic transfers or direct deposit. A RTN code comprises of nine-digit numerical code, the code is placed at the left side bottom of a financial draft such as a check. The first four digits of the RTN code indicates the Federal Reserve Bank in the district where the bank or financial institution is domicile. The four digits that follow indicates the bank and the last digit of the RTN code is what classifies the financial draft.

Recent News Regarding Routing Transit Number

In recent news, there have been reports that the routing transit number aids the perpetuation of financial crimes including money laundering. A recent news that brought this to the limelight was a news reported in 2018 from Tennessee where two individuals were found guilty of money laundering and wire fraud. It was found out that  the routing transit number aid the perpetuation of these criminal activities.

Keith Beane and Heather Ann Tucci-Jarraf were the citizens found guilty by the jury in Tennessee. The fraud was more than $30 million in value.

References for “Routing Transit Number (RTN) › Personal Finance › Banking…/aba-transit-routing-number-also-route-transit-nu…

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