IFSC CODE
Table of Contents
What is IFSC Code
The term IFSC stands for Indian Financial System Code. The IFSC code is a distinct 11-digit number made up of alphabets and numbers. It’s utilised to do online money transfers like NEFT, IMPS, and RTGS. This code is usually printed on the cheque book issued by the bank. It may also be accessed on the account holder’s passbook’s first page.
The Reserve Bank of India assigns each bank branch an IFSC code. Without a valid IFSC or Indian financial system code, internet banking transactions for transferring funds, such as NEFT, IMPS, and RTGS, cannot be performed.
In general, the 11-digit IFSC code does not alter or change. After merging with five affiliate banks and one additional bank, the State Bank of India recently altered the Indian financial system code of its branches across the country.
What is the importance of the IFSC Code?
The following points emphasis the significance of this code.
It is simpler to identify or search for banks using their AFC codes.
Errors are reduced—it aids in the removal of any discrepancies in the money transfer procedure.
This code is often used in electronic payment technologies like RTGS, IMPS, and NEFT to make electronic payments simpler.
What is the format of the Bank IFSC Code?
The first four letters of an IFSC code are alphabets that represent the bank name. As a result, each branch of the same bank’s code will start with the same four letters. The number zero is the fifth character.
The next 6 letters are figures or integers that represent the branch code, which is what distinguishes one IFS code from others.
How does IFSC code work
The Indian financial system code is an alphanumeric identifier that facilitates electronic money transmission in India. Each bank branch that engages in India’s two primary settlement and payment systems, namely national electronic funds transfer and real-time gross settlement, is recognized solely by this code.
The Reserve Bank of India assigns an 11-character code called an IFSC code. The bank is represented by four letters in the first part of the code. The following character is zero, which is set aside for future usage. The final six characters represent the branch’s identifying code.
For instance, the Corporation bank’s IFS code begins with the letters CORP. Because there are so many banks with multiple branches, you may look for the bank that is engaged in the transaction using the ASC code.
IFS codes are required for payment transactions such as RTGS and NEFT transfers. For the Karnataka branch of Corporation Bank, the IFSC code will be CORP0000251.
How to know the IFSC code?
The IFSC search is straightforward. If you have a bank account with any branch, you will be familiar with its IFC since it is listed in the previous book.
Nevertheless, if you don’t want to create an account, you may look for the code on the Internet. There is an official site of IFSC that may be utilised to find an IFSC code.
How to search the IFSC code of a Bank’s Branch?
IFSC stands for Indian Financial System Code and is an 11-digit alphanumeric number used to identify bank branches that engage in electronic monetary transactions such as NEFT and RTGS. The IFS code can be found in a person’s bank passbook or on a chequebook.
Any bank branch’s IFSC may be found by visiting the bank’s official website or phoning their helpline number. If you wish to know the HDFC Bank Branch code, for example:
- As previously said, you can locate it on your chequebook or in previous pardoned by the bank transactions.
- IFS codes are also available on the RBI’s official site. It appears alongside a list of banks that participate in the RTGS or NEFT networks.
- Apart from the aforementioned, third-party websites can also assist you in locating the information you want.
- To discover the IFS code for a Bank, for example, go to www.SattvaCFO.com
Select ‘Search SBI bank code by Branch’.
Select the appropriate option from the drop-down menu and fill in the needed information, such as state, district, and branch. The complete data of that bank branch will show in front of you once you input these details.
What is MICR Code?
Magnetic Ink Character Recognition technology is used to print MICR codes on checks. This allows the cheques to be identified, which leads to speedier processing. A MICR code is a nine-digit number that uniquely identifies a bank and branch in an Electronic Clearing System.
How to locate IFSC Code & MICR Code on a Bank Cheque?
The MICR code is found next to the check number on the bottom of a cheque leaf. It’s also displayed on the first page of a savings account passbook from a bank.
What is the difference between IFSC Code, MICR Code and SWIFT Code?
| IFSC Code | MICR Code | Swift Code |
| It’s an alphanumeric code of 11 digits. | It’s a numerical code of nine digits. | The SWIFT code is made up of 8 or 11 characters. |
| Used in NEFT, RTGS, and IMPS online money transfers. | Cheques are processed or cleared more quickly when this method is used. | Used to make international credit transfers between banks easier. |
| The Reserve Bank of India designed it. | The Reserve Bank of India designed it. | The International Organization for Standardization has given their approval |
| The first four characters represent the bank code, the fifth character is ‘0,’ and the final six characters indicate the branch code. | The first four numbers are the city code, the middle three are the bank code, and the final three are the branch code. | The first four characters denote the bank code, the following two indicate the nation code, the fifth and sixth characters display the location code, and the final three characters are optional and indicate the branch code. |
What are the modes of fund transfer using IFSC Code
There’s no disputing that virtually everyone in our orbit uses online payment methods, and you’re no exception. The digitization of monetary transactions has provided a multitude of solutions to support this online trend.
The ease with which we may move cash online has made our lives a lot easier. Almost every other bank offers a variety of payment alternatives, such as Immediate Payment Service (IMPS), National Electronic Funds Transfer (NEFT), and others.
How one can transfer funds using IFSC Code?
Online money transfer has grown easier and more convenient thanks to the IFSC Code. The RBI has allocated these codes to bank branches to facilitate NEFT, RTGS, and IMPS financial transfers. Now let us consider the example of how the IFSC works while transferring money. HDFC0000043 is the IFSC code for the HDFC Saket branch in New Delhi. The first four digits of this number identify the bank, which is HDFC Bank. ‘Zero’ is always the fifth digit. The last six characters, 000043, are used by the Reserve Bank of India (RBI) to indicate the bank’s branch.
Let’s take a look at how the IFSC functions in a transaction. When initiating a fund transfer, the payee’s bank account number and IFS code must be provided. Once the remitter has provided all of the required information, the funds are seamlessly transferred to the beneficiary’s account using the IFSC Code. The time it takes to complete a fund transfer with an IFSC code is simply a few minutes.
The IFSC can also be used when buying mutual funds or insurance through Net Banking. Because the Reserve Bank of India’s National Clearing Cell controls all transactions, the IFS Code assists RBI in keeping track of various transactions and completing fund transfers without delay.
FAQs
Is IFSC Code & Branch Code the same?
The IFSC code and the branch code are not the same things. The 11-character Indian financial system code is used to recognize the bank and its branch. The branch code is similar to the IFSC code, however, it is not the same.
What is the branch code of a bank?
A bank branch’s branch code is used to differentiate one branch from another. It’s on the bank’s website, and it’s displayed on cheque books and passbooks. The branch code is the final six characters of any IFSC code.
Is a cheque required for NEFT?
No, NEFT does not need a cheque.
