The Reserve Bank of India which is the Apex banking body in India assigns a unique identification number to all banks and its branches which come under its purview. IFSC is short form for Indian Financial System Code. Each bank and all its branches have an IFS code. The IFS code facilitates virtual net banking between Banks as well as between branches thereby facilitating interbank electronic funds transfer.
What is the Format of an IFSC code?
The Code is an 11 digit alpha-numeric code, assigned to it by the RBI. Each code is unique and belongs to a particular bank and its branch. It is akin to the Voter ID card, Pan Card, or the Adhaar card of an individual Indian citizen and can be said to be the unique identity number of the bank branch.
What Does the Code Indicate?
- The first four characters are in alphabet letters and denote the Bank name.
- The fifth character in the whole IFSC code is zero and is reserved to denote the future transaction
- The last six may be either alphabets or numeric characters. They denote the particular branch of that bank.
- Let us demonstrate this by taking up a State Bank Of India IFSC Code which may be :
SBIN- The first four characters denote State bank of India. These four characters will remain constant for all State Bank of India IFS codes, and only the last 6 characters will change.
0-The fifth character will remain constant and is meant for future use. This character remains as ‘0’ for all banks.
060399- The last 6 digits are the code for a particular branch of SBI. So for instance another SBI branch may have the last 6 characters as 060389.
How to Find the State Bank of India IFS code or the IFS code for Any Bank?
- In case you want to find out the IFSC of any Bank branch you can find the list from the RBI website.
- Also each and every bank across the country has a bank wise IFSC list available with it.
- The cheque/cheque book which is issued by any Bank will have this code printed on it. Therefore SBI chequebooks will carry the IFSC code for that particular branch from where it has been issued.
- You can go to the website www.indianbankdetails.com to find the IFS code.
- You can go to website of SBI and you will find a page which helps you to find the IFS code for any SBI branch.
- You will have to feed in the details of the State, district, branch, and you will be given the IFSC code. For instance if you feed in Gujarat as State, Ahmedabad as District, and Ahmedabad C. G road as Branch then the IFS code will be generated as SBIN0060399
Why is the IFSC code Important?
Banking today is virtual between banks and branches. The IFSC code is required to validate the transactions between them. RTGS and NEFT transactions require the NEFT code to be specified.
The IFSC system is critical in making interbank electronic funds transfers quick, smooth and streamlined.