IFSC (Indian Financial System Code)

What is IFSC?

The full form of IFSC is the Indian Financial System Code. The code consists of 11 characters. Which include letters and numbers. The code is used to identify bank branches when money has to be transferred through NEFT and RTGS. Here NEFT stands for National Electronic Funds Transfer and RTGS stands for Real-Time Gross Settlement. RBI also uses the code to identify the electronic transfer of money.

How does IFSC Work?

IFSC code consists of 11 characters and it is used to transfer money through NEFT and RTGS. The first four characters of IFSC denote the bank name. The next character is 0 which is reserved for usage in the future. The last six characters determine the branch and they represent the branch of the bank. This helps the transferring bank to transfer the money to the correct branch.

How to find the IFSC code of a branch?

There are four ways which you can use to find the IFSC code of your branch and we will discuss them here.

Cheque Leaf

The cheque book is considered as one of the easiest ways to find the IFSC code. You can find the address of the branch at the top left corner of the cheque book. A code of 11 digits can be found at the end of the address and that is the IFSC code.

Passbook

In the passbook, you can refer to the front page where accent details are mentioned. You can also find the branch details on the same page. IFSC code is also mentioned on this page.

RBI Website

You can navigate to the official website of the RBI where a tab of IFSC code is available. If you know the name of your branch, you can click it to know the IFSC code. If you do not know the name of your branch. You just have to select the ban name and a list of IFSC codes will be displayed.

Bank Website

You can also navigate to the website of your bank to know the IFSC code. Almost all banks have their websites and you can locate the branch to find the IFSC code.

Difference between MICR and IFSC

IFSC and MICR have a few differences and some of them are available in the table below −

IFSC	MICR
IFSC code is used to transfer money from one bank to another through NEFT and RTGS	MICR is used for the clearance of the cheques
IFSC code consists of 11 characters	MICR consists of 9 characters
Only bank and branch codes are available	Pin code bank code and branch code are available
IFSC code can be used only in India MICR can be used all over the world	MICR can be used all over the world
IFSC code consists of letters and numbers	MICR consists of only numbers

Advantages of IFSC

There are many advantages of IFSC and some of them are listed here −

• IFSC code helps RBI to maintain the smooth operations of all transactions

• RBI can use the IFSC code to manage, monitor, and track all the transactions

• IFSC code of the recipient is needed to transfer money through NEFT and RTGS

• IFSC code ensures that money has been transferred to the accurate destination

Conclusion

Indian Financial System Code or IFSC is used by banks to transfer money through NEFT and RTGS. It is an 11-digit code in which the first four characters represent the bank and the last six characters is the branch code. The “0” after the first four digits is reserved to be used in the future.

FAQs

FAQ 1: Is the IFSC code needed for online transfer?

Ans: Yes! For online funds transfer, an IFSC code is needed.

FAQ 2: What happens if the IFSC code is wrong during an online transaction?

Ans: In this case, money will be transferred back to your account.

FAQ 3: Can the IFSC code be found through my account number?

Ans: No! Your account number does not show the IFSC code

FAQ 4: Where can I find the IFSC code of my branch?

Ans: You can find your branch's code passbook, cheque book, RBI website, and your bank's website.

FAQ 5: Is the IFSC code necessary for online transfers?

Ans: Yes! IFSC code is needed for online transfer?