IFSC code- the benefits and the range of other aspectsFebruary 2, 2022
IFSC, an abbreviation for Indian Financial System Code, is an 11-digit alpha-numeric code. The purpose of the code is to uniquely identify a bank branch that is willingly participating in a funds transfer system that is RBI regulated. The code helps transfer money using the IMPS, RTGS, NEFT method. 4 digits of the IFSC code represent from the beginning represent the bank and the last six characters the branch. Again, it’s good to remember that the 5th character is zero.
Benefits of IFSC
- Internet Banking– profoundly significant for online banking, IFSC code regulates the entire internet banking facility. The net banking users submit facts, including the IFSC code, to complete the fund transfer transaction.
- Easy and quick Transfering funds – with the IFSC code, you can get access to the Quick transfer of money. Carrying out transactions in emergencies becomes better with the IFSC code. The entire transaction takes a couple of minutes to happen.
- NEFT/RTGS/IMPS payments- IFSC code-based transactions are accurate and take lesser time. Besides, you don’t have to face issues due to the minimum and maximum limits. One of the fastest modes of transfers, RTGS, is finding pace.
Difference between IFSC Code & MICR Code
monetary transactions do not face limitations due to financial institutions like banks. However, there is a necessity for verification before processing a transaction. Faster, simpler, and automatic transactions via the bank require the involvement of the MICR Code and IFSC Code. In this section, you’ll come to know about the difference between the codes explained by financesjungle.com.
- IFSC Code facilitates electronic money transfer between the banks in India. On the contrary, it’s good to remember that the MICR code makes cheque processing simpler and faster.
- IFSC Code has different sections and turns out to be the 11-digit alpha-numeric code. On the other hand, MICR is a 9-digit code.
- In the IFSC code, you can see that the first four characters represent the name of the bank. On the contrary, in the MICR Code, the first three digits stand for the city code.
- Last but not least, the essential point that you should note is that the last six digits of the IFSC code represent the bank location. On the contrary, the last three digits of the MICR Code indicate the bank branch code.
IFSC Code Finder:
IFSC code, a unique 11-digit alphanumeric code, helps identify a bank’s branch. IFSC Code Finder also considers finding the code. The banks that have the individualized IFSC codes are SBI, Punjab National Bank, Bank of Baroda, HDFC Bank, ICICI Bank, Canara Bank, Indian Bank, Yes Bank, Axis Bank, Union Bank of India, or any other RBI-approved commercial bank. That said, with such a supportive service, you can get the IFSC code within seconds.
For online fund transfers with the involvement of the IFSC code, it becomes mandatory to register the beneficiary. Finding bank IFSC code is possible both online and offline. Banks usually now display IFSC Code on the cheque. According to the norms of the Reserve Bank of India (RBI), a bank has the capability of rejecting the request of a customer for funds transfer in the case the sending branch notices that all the associated beneficiary details are not adequate for the identification of the beneficiary. That said, to eradicate such issues, there is an utmost necessity of the Beneficiary’s Branch IFSC for beneficiary identification. The beneficiary’s name, account type, branch name, bank name, and account number are some other elements that require mandatory consideration.
Credit Card Payment
A 16-digit Credit Card Number is a basic necessity for making payments towards credit card dues. You can get access to it with the help of the NEFT. Customers must provide the beneficiary account number. It makes it easy to go ahead with handling the card bill payments. RBI always keeps suggesting the card-issuing banks allocate the branch for accepting such payments. It comes with the involvement of the designated branch to the credit cardholder.
IFSC Code Format:
Eleven characters are there in the IFSC code. Here, have a look at the common codes.
HDFC Bank IFSC Code (has the alphabets)- HDFC
SBI Bank IFSC Code (has the alphabets)- SBIN
ICICI Bank IFSC Code (has the alphabets)- ICIC
IDBI Bank IFSC Code (has the alphabets)- IBKL
Indian Overseas Bank IFSC Code (has the alphabets)- IOBA
Axis Bank IFSC Code (has the alphabets)- UTI
Canara Bank IFSC Code (has the alphabets)- CNRB
Bank of India IFSC Code (has the alphabets)- BKID
Kotak Mahindra Bank IFSC Code (has the alphabets)- KKBK
Bank of Baroda IFSC Code (has the alphabets)- BARB
Indian Bank IFSC Code (has the alphabets)- IDIB
PNB BANK IFSC Code (has the alphabets)- PUNB
Union Bank of India IFSC Code (has the alphabets)- UBIN
Central Bank of India IFSC Code (has the alphabets)- CBIN
Yes Bank IFSC Code (has the alphabets)- YESB
Always remember the fifth character is zero. You should also note that the remaining six characters are digits or numbers that will be helping in denoting the branch code. Always keep in mind that the last six characters are a unique part.
Features of IFSC Code
Smoothness in the online fund’s transfer: with the IFSC code, you can rest assured about getting a convenient and hassle-free transfer of funds. You can also get it done from one bank account to another. IFSC Code turns out to be mandatory in the facilitation of all electronic or online transfers. You can also rest assured about getting support with the NEFT, RTGS, or IMPS.
Monitoring of the steady transactions also turns out to be IFSC code that will follow the RBI guidelines. It can also assist in terms of keeping regular track of all the banking transactions. That said, it ensures minimizing the possible chances of any discrepancy. Overall, the fund transfer process turns out to be the most flexible solution.
Unique identification that is the IFSC code works for the unique identification of all banks. So, you can keep track of the respective branches. This is something that will be helping customers with the avoidance of any possible errors.
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Elimination of the Errors also turns out to be the best approach with the involvement of the IFSC code. The IFSC code ensures carrying out the fund transfer process securely. That said, it is the best process that guarantees the elimination of the possible chances of any fraudulent activity.