A Bank IFSC code has become an important part of net banking. The term IFSC, which stands for Indian Financial Code System is provided by the Reserve Bank of India to all the banks and their branches. This code is used for the purpose of the electronic payment system application like RTGS, IMPS, CFMS and National Electronic Fund Transfer. The IFSC code has made the banking process quick and easy to understand as, with the help of this code, one can know about a bank and its location.
To search the IFSC code is also not a tough task as putting the location and name of the bank on the IFSC search page of a website, a person can easily retrieve the information on the IFSC code of that bank.
The IFSC code of a bank is alphanumeric, the initial four characters of this code are in alphabets and by having a look at these characters, one can easily tell that the code belongs to which bank and its branch. The numbers in the code are for the purpose of identifying the branch of a particular branch. There is one thing which common in the IFSC codes of the banks, the fifth characters of all the codes is “0”.
Let us look at the example of HDFC Bank IFSC Code to understand it in a better way:
As we can see in the above code, the initial four characters are HDFC, which clearly indicates that this IFSC code belongs to HDFC bank. The fifth character is zero as stated above, this character is same in all the IFSC codes. The last six characters of this code are branch identifiers. By putting this code on a website which provide information on IFSC codes, you will get to know that this code is for HDFC Bank, Chittaranjan Park.
As per he guidelines of the Reserve Bank of India, it is compulsory for all the banks and their branches to put the IFSC code on cheques. An IFSC code helps in making the banking transactions smooth and hassle-free. Let us look at the benefits of having an IFSC code of a bank:
- It helps in saving time as with the help of it, one can transfer money, bank cheque and demand draft in an easy way.
- The funds are transferred directly to the beneficiary, thus effort and time are saved.
- It does not add any extra expense to a bank account user.
- It alleviates the chances or loss or fraud.
- The notification of a transaction is sent to the sender and receiver.
- It makes the transaction easy for the users and the funds get transferred in a couple of minutes.
Hope, this article will help you to understand the uses of the IFSC code.