Quick Details of IFSC Code

Today, let us find out some nitty-gritty about the IFSC code:

What Is the Full-form of IFSC Code?

The full form of IFSC is Indian Financial System Code.

What is IFSC Code?

IFSC is an 11-digit alpha-numeric code that denotes a particular branch of a bank – it is the identity of a bank, and it works almost like a postal code. Each branch gets a unique IFSC, and all the accounts opened in that branch automatically get that IFSC.

Who Determines the IFSC Codes?

Reserve Bank of India (RBI) decides the IFSC codes.

Format of IFSC Code

The format of IFSC remains the same for all the banks and all its branches; however, the values (alphabets and numbers) may change based on bank code and branch code. An IFSC has three parts:

• Institution code of 4 letters
• A placeholder – Zero
• A 6 digit Branch code

The institution codes remain the same for all branches of a bank. For example, all the branches of SBI have the same 4-letter institution code.

The fifth character is always zero now; it kept reserved for future use.

Lastly, the 6-digit branch code is the unique code of a particular branch of a bank, and all the accounts opened in that branch gets this IFSC.

Remember, your account number is not an indicator of the IFSC code.

Where Is the IFSC Found?

You can easily find the IFSC in the

• Front page of passbook
• Cheque leaf
• Statements
• RBI website
• Bank’s app and website (only if logged in with correct credentials)
• Online IFSC finders (only by entering state, district, and branch)

IFSC Code and Its Importance

Let’s dive into the importance of IFSC codes:

Essential for All Types of Money Transfers

A correct IFSC is essential to make any online transaction. While transferring money to an account, you have to denote which branch of that bank the beneficiary account belongs to and without IFSC, it is impossible to do any monetary transactions in India.

Be it NEFT, RTGS, IMPS, or UPI, you must provide a valid IFSC code to make the transfer successful. No matter whether these transfers occur from a branch of the bank or through any payment gateway or bank apps/websites, correct IFSCs are a requirement.

For NEFT or National Electronic Fund Transfer, the sender has to add the beneficiary's name, account number, and IFSC for a successful payment to the beneficiary. Only if you enter correct details, money gets settled in batches. Regarding RTGS or Real-Time Gross Transfer, the sender has to enter the same details of the beneficiary for making quick and gross transfers. Also, it applies to IMPS or Immediate Payment System – without a valid IFSC, the remitter cannot proceed.

Accurate money transfers

On entering the IFSC of a different branch, it becomes difficult to transact with the destination account. However, the correct IFSC ensures that the money goes to the specific branch where the beneficiary has the account.

Quick and Secure Transactions

IFSC also helps in the smooth communication between the remitter’s branch and the beneficiary’s branch. So, it results in a quick money transfer by validating the beneficiary’s details.

What If IFSC Is Miswritten?

The transaction will likely be canceled if the IFSC is written incorrectly when initiating a money transfer. In this case, the money goes back to the remitter's account on that very day. However, the processing fees (if any) associated with the transfer may not be returned to the sender.

Is It Possible to Transfer Money without an IFSC Code?

No. Be it online transactions or offline transactions, the IFSC is essential for all – it helps in the process of locating a beneficiary account correctly. So, a transaction without an IFSC or an incorrect IFSC is more likely to fail.

Conclusion

Since a bank has branches in multiple states, districts, and cities/villages, it is essential to identify a branch very specifically. IFSC codes also help to locate the branch precisely and power successful money transfers without any failure. So, know the correct IFSC for successful money transfers.