IFSC code stands for Indian Financial System Code; it is issued by the Reserve Bank of India to identify the branch of all banks in India. The code has eleven alpha-numeric characters and it is an important feature for all the banking transactions. All the online payments and bank transfers, require the correct IFSC code of beneficiary bank or the branch. This code is also helpful in streamlining of payments within the different banks and branches.
The Reserve Bank of India controls all banking transactions in India and thus it is a single entity, which has the authority to issue the Bank IFSC code to its associate’s banks. The record keeping of the IFSC codes is also done by RBI. The IFSC code is also imprinted on the cheque books of all the banks as it helps customers to understand to which particular bank, a cheque belongs to. Having the IFSC code also helps in authentication, monitoring and identification of fund exchanges during the banking transactions.
If you want to transfer money within India, to a bank account using the electronic method then you need to the Bank IFSC code of the branch of that particular bank, without having the IFSC code the money transfer process cannot be processed. Here are some points to describe the importance of the IFSC codes:
- It is used in the NEFT process or the National Electronic Fund Transfer, Real time gross settlement and Immediate Payment System, IFSC gives the exact location of the branch of the bank, where the account of the payee is.
- With the help of IFSC, the electronic process is less time consuming and it is also environment friendly as the paperwork is not required and everything is done electronically.
- As the electronic money transfer by IFSC is a quick process and is done in an efficient way, it also facilitates business processes, which contributes to the country’s growth also.
- The IFSC code also provides payments of travel and bills bookings.
There are different ways to find the IFSC code for a particular bank. IFSC code can be found on any website including the website of the Reserve Bank of India. But, in order to find the IFSC code of a bank, you should know the name and location of the bank. To complete the electronic funds transfer to an account, you have to know the IFSC code of the recipient’s Bank.
There are a number of websites that have the list of all the Indian Banks and IFSC codes. You can access any of the website and after entering the bank’s name and location, you can get the IFSC code. In case, you are not aware about the location of the bank, then you can also try to search with the name of the city and you will get all the details of branches within the entered city.
So, if you are looking to transfer some amount, then make sure that you have the IFSC code of the recipient’s bank.