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Indian Financial code system, generally know as IFSC code is the most important thing for banking transactions. It is a code for identification purposes and, is used by all the banks though this code is unique to a Bank’s branch location. The IFSC code has eleven alphanumeric characters and it is provided by the Reserve Bank of Bank to all the Banks and their different branches. By knowing the IFSC code of a bank, a person can easily get to know the exact location of that bank.
As the IFSC code has eleven characters, the first four characters of all the IFSC codes are always alphabetic and by having a look at these characters, one can easily understand the name of the bank to which that particular IFSC code belongs and the rest of the seven characters are numeric though in some of the cases the IFSC code is in the combination of numbers and letters. The uniform thing in all the IFSC codes is the digit zero as the fifth character. Giving an example for the better understanding of IFSC code:
Canara Bank IFSC Code CANA0000008
As we can see in the above code, the initial four characters are CANA, which clearly means that this belongs to IFSC code of Canara Bank, the fifth character of the mentioned code is zero, as mentioned that it is uniform for all the banks, by entering this IFSC code on any website, where you can the information of Banks and their IFSC codes, you will be able to get the full details, such as, Name of the Bank and the exact location of the bank. The last six digits in this code, are the bank identifiers.
Why IFSC code is necessary?
My Raviranjan, a banker said regarding the importance of the IFSC code “ The use IFSC code has made the transactions easy and quick, a very important tool for all the banking services”
IFSC code is a very crucial part of financial transactions as it validates the transactions. By knowing the IFSC code of a bank, we can make transaction virtually without any hassles. All the financial organizations and banks use the IFSC code to conduct National electronic fund transfer and for Real time gross settlement, this code is very helpful in making the transactions easy between different banks accounts, banks and their branches.
The Reserve Bank of India has the control on all the banks and banking affairs throughout India and only it has the authority to issue IFSC codes to different banks and branches and according to the orders of the Reserve bank, the IFSC code is printed on all the cheque books of all the banks.
Hope this article will help you in understanding the importance of IFSC code.