IFSC Code, it must be understood, is an acronym for Indian Financial System Code. It is a unique 11-digit number which is actually a combination of alphabets and numerals. There are many uses of IFSC Code. Take for instance the fact that it is used for transferring funds online for NEFT, IMPS and RTGS transactions.

Mostly the IFSC Code is found on the cheque-books provided by the bank. It can also be found on the front page of the passbook issued to the account holder. What must be noted about IFSC Code is the fact that it is assigned to each bank branch by the Reserve Bank of India. It must come as a matter of great interest to all concern that Internet banking transactions for transferring funds, using NEFT, IMPS and RTGS cannot take place without an authentic code.

The Value of IFSC Code

The values of IFSC Code are many. Take a look at the points listed below to ascertain the utility of this code.

  • Unique Identification: It will help you in identifying a particular branch of a bank.
  • Eliminating Errors: It helps in eradicating any inconsistency in the process of fund transfer.
  • Electronic payments made easier and simpler: It is used in electronic payment tools like RTGS, IMPS, and NEFT.

Understand the Functioning of IFSC Code

It is not at all difficult to understand the Functioning of Bank IFSC Code. On the contrary it is very interesting. Not many know that electronic funds transfer in India is facilitated by an alpha-numeric code which is also known as the Indian Financial System Code (IFS Code). The Code recognizes every branch of the bank which takes part in the two main settlement and payment systems in India known as National Electronic Funds Transfer (NEFT) and Real Time Gross Settlement (RTGS).

It represents the 11-character code that is allocated by the Reserve Bank of India (RBI). The first part of the code is made up of four letters which represent the bank. Next comes zero that is meant for future use. The last 6 characters represent the identification Code of the branch.

Take for example the fact that IFSC Code of State Bank of India (SBI) begins with letters ‘SBI’. As there are numerous banks with plenty of branches, it is used to find out the branch involved in the transaction. It is very important for payment transactions that include RTGS, NEFT transfers.

How to Find IFSC Code Online?

It is very simple to find IFSC Code. Anyone who has an account with any branch of the bank will get to know about it automatically as it is printed on the passbook.

However, in case when someone who does not have an account with any bank wants to know about IFSC Code then he can do so by using the internet. There is an official website of IFSC Code as well where one can gather all information about it.

How Can One Search for IFSC Code of A Particular Branch of the Bank?

It is very simple to search for IFSC Code. All that you need to do is to visit the official website of a particular bank or call on their helpline number. For example, if you want to know about IFSC Code of ICICI Bank Delhi, Paschim Vihar branch then

  • You can call the branch and ask the code on the phone.
  • You can also find it on the cheque book or passbook provided by the bank.
  • RBI’s official website also includes the list of banks participating in the RTGS/NEFT network.
  • One can also find Bank IFSC Code at third party websites like IndiakaLoan.com. All you need to do is to fill in the requisite information in the form given and you are on the go.

How Can Money Be Transferred By Using the IFSC Code of the Bank?

Online money transfer has become exceedingly hassle-free with the introduction of IFSC Code. These Codes have been assigned to different branches of the bank to perform NEFT, RTGS and IMPS fund transfer in a smooth and simple manner.

Let us now understand the functioning of Bank IFSC Code at the time of transaction. Whenever a fund is initiated one has to provide the bank account number and the IFSC Code of the payee. Once it is done the fund is transferred to the account of the receiver with the help of this code without any hassles. It takes only a few minutes for fund transfer with the help of IFSC Code.

IFSC Code, it must be noted, can also prove to be helpful while purchasing mutual funds or insurance through Net Banking. Since all the transactions are monitored by the National Clearing Cell of Reserve Bank of India, IFSC Code helps RBI in tracking different transactions while executing fund transfer without any trouble.