IFSC code stands for Indian Financial Code System, and it is one of the most necessary things that you require at the time of doing bank transactions. This code is used for identification uses, all the banks have a unique IFSC as per their branch location. The IFSC code is provided by the Reserve Bank of India and this code has eleven characters which are alphanumeric, all the banks and their branches have a different IFSC code. With the help of the IFSC code, you can easily find the name and the location of a bank.
As mentioned that this code has eleven characters, the initial four characters are alphabetic in all IFSC codes and the rest of the characters are numeric, although some of the IFSC codes are in the combination of letters and numbers, and all the IFSC codes have a unique thing in them, they have 0 as the fifth character of a code. Let’s have a look on an example to understand it in a better way:
Indian Bank IFSC Code:
As we can see that the above code has four character “IDIB”, which means that this code is for Indian Bank, as above mentioned, the fifth character is zero, which is uniform in all the IFSC codes. The last six characters are alpha-numeric and they stand for the branch of the bank, by putting this code on the Internet you will get to know that this code is for the Dwarka branch of Indian Bank. In case you want to find the IFSC code of any other bank, then by putting the name of the bank and its location, you can retrieve the full information online.
Why We Need the Bank IFSC Code?
The IFSC code of all the banks is a very important part for all the financial transactions as without it the transactions will never get validated. Having the IFSC code of a bank will ensure that your transactions would happen in a quick and hassle-free way. All the banks and different financial organizations use the IFSC code for Real-time gross settlement and National electronic fund transfer, this codes proves very helpful at the time of making transactions quick and easy between different branches of different banks.
As per the instructions of the reserve bank of India, it is compulsory to print the IFSC code on the cheque books and passbooks of all the banks and their branches. The IFSC code all helps a lot in the searching the exact bank and its branch.
Hope this article will help you to understand the value of IFSC code in a better way.