What Is An IFSC? Why It Is Used?

by Arpita Wadhawan
IFSC

What is IFSC Code? IFSC is a nomenclature for Indian Financial System Code. This Indian Financial System Code (IFSC) is a unique eleven digit number which is a combination of alphabets and numerical digit. It is used to transfer funds online via NEFT, IMPS, and RTGS transaction system. The IFSC Codes of each bank branch is predefined by Reserve Bank Of India (RBI). Nowadays account holder can easily check their IFSC Codes by own. This IFSC code can be found on their passbook and also cheque-book provided by the bank.

Format for Bank IFSC Code As you know that IFSC Codes are unique eleven-digit alphanumeric code. So now let’s know how it’s formed by RBI. The first 4 characters of IFSC Code are alphabets which represent the bank, the fifth character is zero (0) and the last 6 characters are usually numbers but they can be alphabets also. And this last 6 character represents the bank branch.

Important of IFSC Code It’s as important as like your Name by which you have a unique identification similarly for bank branches they have their unique name which is IFSC Code. It also helps to reduce any discrepancy in the fund transfer process. That means it’s a safe way to transfer funds in any corners of your country. And it’s used in electronic payments methods like RTGS, NEFT and. IMPS.

How does IFSC Code work? Electronic funds transfer is one of the easy-to-use in mode of funds transfer and to use this IFSC Codes is must.let’s take an example IFSC Codes of State bank Of India (SBI) starts with letters “SBIN” and after that the branch code which is strongly denoted the branch where you want to transfer the funds, so it is within bank means SBI to SBI. But if you want to transfer your funds to other banks branches like ICICI, AXIS bank or HDFC bank then you have

Leave a Comment

* By using this form you agree with the storage and handling of your data by this website.

We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK Read Privacy & Cookies Policy