IFSC Code: Why is it so important for bank transactions? How to search IFSC code of particular bank, branch?
IFSC Code: For all payment methods, the IFSC code is required to complete the fund transfers. These include fund transfers through RTGS, CFMS, and NEFT.
IFSC Full Form: The Reserve Bank of India {RBI} assigns a unique 11 alphanumeric code to bank branches called the Indian Financial System Code {IFSC}. It is a combination of digits and alphabets and plays a significant role in making online financial transactions namely Real Time Gross Settlement (RTGS), Immediate Payment Service (IMPS) and the National Electronic Fund Transfer (NEFT).
Format of IFSC code
IFSC code is the combination of alphanumeric code wherein the bank is represented by the first four alphabetic characters. The following six characters are either numerical or alphabetic and come after the number 0. The fifth character is always 0 in IFSC.
Why IFSC code is needed?
For all payment methods, the IFSC code is required to complete the fund transfers. These include fund transfers through RTGS, CFMS, and NEFT.
The existence of the code ensures that the funds are transferred without error to the correct destination bank as it helps in identifying a particular bank branch.
The hassle of going through protracted transaction formalities has decreased owing to the IFSC code. The days of sending money through the local bank branch by filling out a lengthy form, and then sending the money into the recipient's account are long gone. Now the transactions are paperless.
Money can now be sent online because of IFSC with the utmost convenience and speed due to the advent of the internet and its widespread use.
IFSCs are essential to complete online transactions and make sure that the amount is directed to the targeted bank account.
IFSC Code Search: How to find IFSC code of a particular bank, branch?
The IFSC for each bank branch can be found on the leaf of a customer's cheque book or passbook.
On the website of the Reserve Bank of India, one can also find the IFSC of a particular bank branch.
Moreover, one can find their bank branch's IFSC code by visiting the respective bank's official website.
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