An IFSC Code is allotted by the RBI (Reserve Bank of India) to all the banks in the country and its branches. Commonly, an IFSC code is found in the cheque book, account passbook, and on the RBI website. An IFSC code is required during the e-fund transfer.

What is an IFSC Code?

what is IFSC code

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Indian Financial System Code or IFSC code is a unique alphanumeric 11-digit number which is required during the e-transfer of money for IMPS, NEFT, and RTGS transactions. An IFSC code can be found easily on the cheque book, account holder’s passbook, and also on the Reserve Bank of India’s website. This code is assigned to each branch of the bank by RBI. Most internet banking transaction is not valid without an IFSC code.

Commonly, RBI does not update or change the IFSC code. Lately, SBI (State Bank of India) changed the Indian Financial System Code for all its branch after its merger with 5 associate banks and one other bank.

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What is the Importance of IFSC Code?

What is the importance of IFSC code?

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The following are three major benefits of Indian Financial System Code:

  1. Provides Identification: This code helps in identifying the bank and its branch. Additionally, it provides unique identification to every bank and its respective branch.

  2. Elimination of Errors: This unique number helps in eliminating any error during the e-fund transfer.

  3. E-transfer: An IFSC code makes the electronic payment easier – NEFT, RTGS, and IMPS.

What is the Format of the IFSC Code?

format of IFSC code

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The Indian Financial System Code is 11-digit alphanumeric code. The first 4 characters of the code are generally alphabets that represent the bank. The fifth character of the code is usually zero (0). Generally, the last 6 characters are a mix of numbers and alphabets that represent bank branch.

What is the Use of IFSC Code?

use of IFSC code

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This code is used by the Indian Financial System to enable electronic and online money transfer. With the help of this code, you can easily transfer money through NEFT and RTGS. However, when you transfer funds through UPI, Aadhaar number is required at the place of this code.

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How to find the IFSC Code?

find the IFSC code

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The Indian Financial System Code can be found easily on:

  1. It can be found on the cheque leaf and bank passbook provided by the respective bank.
  2. The codes of all the banks are available on the Reserve Bank of India’s website.
  3. The codes can also be found on the official website of the respective bank.

What is a MICR Code?

MICR code

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Magnetic Ink Character Recognition or MICR Code is an innovative technology. It is used to authenticate the credibility and legality of the paper documents in the banking. It is a 9-digit numeric code found on the bottom of the cheques. MICR code has a similar concept to that of barcodes except for they can be easily distinguished and read by humans.

This code is used by banks to verify the cheques before clearance. However, this technology is used for other bank documents as well. A MICR code includes details as that of the bank code, account details, cheque number, and control indicator. A MICR code enables quick, efficient, and error-free processing of the cheques.

What is the Difference between the IFSC & MICR Code?

 difference between MICR code and IFSC code?

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Let’s understand the difference between IFSC and MICR code:

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  • This code is used to enable e-fund transfers between individuals and bank in India.
  • This code is used to enable quick and efficient cheque processing.
  • It is an alphanumeric 11-character code.
  • MICR code is a 9-digit code.
  • The first 4 characters of the code indicate the bank.
  • The first 3 characters of the code indicate the city code of the bank branch.
  • The last 6 characters of the code indicate the bank branch.
  • The last 3 characters indicate the code of the bank branch.

How to Transfer Funds with the Help of IFSC Code?

transfer funds with the help of IFSC code

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The Indian Financial System Code makes the transfer of money easy, quick, and hassle-free. These RBI assigned codes are specific to the bank and their branches. The NEFT, RTGS, and IMPS funds are only valid through IFSC code. Let’s understand how to transfer money with the help of the IFSC code.

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When an electronic fund transfer is initiated (be it RTGS, NEFT, or IMPS), the payer has to fill bank name, branch, account number, and the IFSC code of the payee. The funds are transferred is a hassle-free manner if all the required details are provided by the payer. With the IFSC code, the fund transfer is secure and convenient.