Everything Know about the Ifsc code

What is an IFSC Code?

IFSC code (Indian Financial System Code) is an alphanumeric 11 digit permanent code that is assigned by the reserve bank of India (RBI) to all Indian banks and also for each branch operating in the Indian market. This code is non-changeable except for any merger or reorganization.

It is mainly used for fund transfer from one bank to another bank and its branch through NEFT (National electronic fund transfer), RTGS(Real-time gross settlement), IMPS(Immediate payment service). You cannot proceed with your transaction without a valid IFSC code because it signifies the branch and its location that you want to make a transaction. 

The format of 11 Digit IFSC is basically starting from the alphabet and ending with the numeric like, PUNB0483800 is a code of Punjab national bank, Ghazipur Delhi.

The first 4 letters are alphabet that indicates the bank name and then numeric starting from 0(zero) to 6th position mention the branch code.

Benefits & Features of the IFSC Code?

• Easy to Identifying the actual bank branch where the transaction or bank-related services take place
• Eliminates errors when transferring funds.
• Paperless transaction.
• Easy for all types of electronics payment i.e. IMPS, RTGS, and NEFT.

How to find IFSC code?

Finding an IFSC code is a very easy process in the current age of technology. You can simply find any bank Indian financial system code on the reserve bank of India(RBI) website or also can check at moneyasset.in. We have a full list of all bank IFSC codes that are involved in online transactions as issued by RBI.

Simply You can find your own bank branch code on the cheque leaf mentioned at the top along with the bank name and address of the branch of it or on the first page of the bank passbook where personal details are printed as issued by the bank. 

A bank cheque book has also mentioned a few more details that are cheque numbers or serial numbers that indicate the page series of the book and MICR code which is used for electronic clearing systems.

What is MICR code?

MICR is declared as a magnetic ink character recognition code to identify a bank and its location which is a combination of 9 digit code issued by RBI to all Indian banks and its branches. MICR Code is used for making a fast clearance of cheque in the electronic clearing system. This code is printed on the passbook and cheque leaf next to the cheque number.

The 9 digit MICR code is usually divided into three-character parts

• First 3 character indicates the city of bank
• Second 3 character indicates the bank 
• Last 3 character indicate the branch of a bank

Let’s understand the MICR with an example

How to use IFSC code for money transfer?

As we grow up in the digital era the resources and facilities are changing according to the usage with time. As earlier depositing money in an account or transferring is a hassle and time-consuming process, fill-up the form validated by authorized staff and many more steps to be followed. 

But the time has changed and transferred money from one account to another account is very simple, every bank offers online money transfer facilities via NEFT, RTGS, IMPS. Anyone can process at their end via mobile or computer just need to carry correct details of the payee and self-registered for net banking services.

Money transferring using IFSC code can be done in various methods as per the need

NEFT- National electronic fund transfer is an easy and common method for fund transferring from one account to another account. 

To initiate NEFT must have IFSC code along with the account number, name of the beneficiary account holder, and its branch code, without this we cannot process the transaction. All the transactions are settled in a batch-wise format.

NEFT Services is chargeable and will be debited apart from the transferred amount and this amount will vary according to transferred amount.

RTGS – The expanded form is a real-time gross settlement. This can be defined as transferring funds from one bank to another on a real-time basis and on a gross settlement. RTGS takes place in the book of reserve bank of India so that the payments are final and irrevocable. 

This is generally used for a large amount of transaction minimum of Rs. 2 lac. To complete the whole transaction, customers need a bank account number, IFSC code of the branch, and name of the beneficiary and both side branches must be RTGS enabled. A service charge of RTGS will be charged by the bank as per their guidelines. 

Even a normal person can also complete the transaction at their own end through net-banking.

IMPS – IMPS is an acronym of Immediate payment services. This is the fastest channel of electronic fund transfer from one account to another via mobile banking, net banking, and also through ATM. This service can be available 24×7 as per the convenience including all holidays. In December 2019 NEFT is also available for 24×7 for the customer. 

Making a complete successful transaction customer needs to have MMID(mobile money identification number) a seven-digit code in which the first four digits are the unique number that indicates the bank that offers IMPS services, bank account number, and IFSC code, and Aadhar number.

Difference between IFSC & MICR Code?

Frequently Asked Questions