IFSC or Indian Financial System Code is a unique number allocated to each branch of a bank. IFSC is a unique number and so it is very helpful while doing online transactions.
You do not have to remember every details of your branch, just remembering IFSC of branch is enough to conduct the online transaction.
IFSC was introduced to link all the branches with common electronic system to do banking in India. When a transaction is initiated, with help of IFSC branch of a bank gets intimation of the transaction and fund checking or details correction happens.
IFSC is required by banks to participate in RTGS or NEFT. When you do a RTGS (Real Time Grossing Settlement) or NEFT (National Electronic Fund Transfer), the related bank/branch is intimated using IFSC.
Bank and Branch wise details of all the banks are submitted to RBI and you can check the IFSC code from RBI website.
What is IFSC or Indian Financial System Code?
IFSC or Indian Financial Code is 11 digit alphanumerical code that represent a branch of a bank. Every branch of an Indian Bank participating in NEFT and RTGS require IFSC code.
What is the format of IFSC and what it indicates?
IFSC is 11 character code and first four character are alphabets which are nothing but bank codes. For example State Bank of India will have a code SBIN.
Fifth code is left unused, last 6 digits represents a branch.
Does Bank check IFSC code while registering payee for online fund transfer?
Yes, IFSC code is checked by bank while registering a payee for online fund transfers. It is easy for banks to check payee details if correct IFSC code is provided while registering a beneficiary for online transfers.
Banks can check the details of payee and validate by going to the database of branch indicated in IFSC.
If wrong IFSC given while registering Beneficiary for RTGS or NEFT transfer, will Bank reject the request?
Yes, bank will reject the request. Bank will search the account number in particular branch, and if account number is not found in the branch database, bank will reject the request raised for beneficiary addition.
How to find IFSC code from Cheque book issued by a Bank or its Branch?
Every branch issuing the cheque book has to compulsory print IFSC on its cheque. You can find the IFSC code from the cheque issued by a branch or bank.
Posted 1 year, 5 months ago by Rahul Rai
There are many online website which give easy accessibility to IFSC code searching online. Tikshare has really done well, you can check each bank and its branch IFSC codes online. Importance and uses of IFSC code can be easily understood, even Income Tax department requires IFSC code while filing your income tax return.
IFSC code is required for all the transactions carried online. You need not to remember your IFSC code, you can easily search them online.
A very informative and good post to read.
Posted 1 year, 5 months ago by Prakash mehta
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