Indian Financial System Code (IFSC) is a 11-digit character code which represents the identification of an individual bank branches that participate in the various online money transfer options like NEFT (National Electronic Funds Transfer), IMPS (Immediate Payment Service) and RTGS (Real Time Gross Settlement).
IFSC is mainly used to identify the bank branches which are involved/participating in any RBI regulated funds transfer system. The first 4 digits of the IFSC represent the bank name while the 5th character is Zero and the last 6 characters represent the particular branch of that bank.
Frequently Asked Questions
What is the IFSC code?IFSC stands for the Indian Financial System Code. The motive behind IFSC is to pinpoint the exact bank and branch in which an account is held. It is around 11-digits and is used during online money transfer systems such as NEFT and RTGS.
Where can I find the IFSC code for a bank's branch?You can find the IFSC code for your bank's branch from the cheque leaflet. At the bottom of the leaflet, you will find an 11-digit code which is the IFSC for that bank's branch.
You can also contact the bank branch and ask them for IFSC code.
Why do I need the IFSC Code?The IFSC code is required to perform EFT (Electronic Funds Transfer) across the various banks located all over India. The IFSC code is used by banks to identify the source and target bank branches for funds transfer.
Is SWIFT Code and IFSC Code the same things?SWIFT or Society for Worldwide Inter-bank Financial Telecommunication is used when the transfer of funds takes place between two bank accounts internationally, while IFSC Code is used when the funds are transferred between banks within the geographical boundaries of India.
How are IFSC Codes created?IFSC Codes are allotted to various bank branches through the head office of the banking institution by the RBI(Reserve Bank of India), which is the only authority empowered with generating and allotting IFSC.
What happens if I put the wrong IFSC Code?During funds transfer, if you happen to put the wrong IFSC Code by mistake then it may that the fund transfer may take place and the amount is credited to any other individual, therefore, you should double-check IFSC Code before making funds transfer.
Can I transfer funds without IFSC Code?No, It is not possible to transfer funds online without the IFSC Code as it is mandatory for online funds transfers.
What are various types of Electronic Funds Transfer?There are two forms of electronic funds transfer that makes the use of the IFSC code, which are:
1. NEFT: National Electronic Funds Transfer is similar to an electronic check where the funds' transfer request made take some time to happen. After a request for an NEFT transaction is placed, it will be processed in the next NEFT batch if the current NEFT batch is over.
2. RTGS: Real Time Gross Settlement is meant for funds' transfer which is required immediately. Once an RTGS request is placed, the funds are transferred instantaneously.
3. IMPS: IMPS offers instant payment inter-bank electronic fund transfer service and is serviceable 24/7 throughout the year.