Is IFSC code also known as the bank code?

An IFSC code or the Indian Financial System Code is also referred to as the bank code in India. It helps identify the individual bank branch participating in any RBI regulated funds transfer. An IFSC code, assigned by RBI, is an 11-character alphanumeric code wherein the first four characters represent the name of the bank, the 5th character is ZERO and the remaining 6 characters represent the specific branch of that bank. It is a unique code for every bank branch across India that makes all your online transactions safe and secured, thus leaving no probability of inaccuracies.

Bank IFSC code is usually printed on the NEFT enabled bank’s cheque book, but in case you don’t find it there, you can search the code online. There are a good many websites equipped with the bank IFSC code finder tool that can help you find the IFSC code of your bank. All you need to do is input the details or select from dropdown such as your bank’s name, the state, the district, your bank branch and click on search. The result will show you the IFSC code for the respective bank branch in which you want to transfer money.

The importance of IFSC code is so much that it is mandatory for every IMPS, NEFT and RTGS transfer across India. It helps identify the bank branch where the fund needs to be transferred. For example, if you want to transfer funds from your account to a different account using NEFT payment gateway, you’ll have to fill a form with the other user’s account details, which include recipient account holder name, account number, IFSC code of the branch, account type and the transfer amount. 

You can transfer funds anywhere in India through NEFT (National Electronic Funds Transfer) payment method. For this purpose, forms are available at bank branches across India. Some banks also provide NEFT funds transfer facility via ATMs. Bank IFSC codes are mandatory to transfer the funds as it helps in knowing the branch code in order to transfer the amount in the respective branch. Without IFSC Code, you can’t transfer the amount through any method.

6 Benefits of Bank IFSC Code

1. It eliminates the time-consuming facilities such as demand draft or bank cheque to transfer money.

2. It saves a lot of time and money and beneficiary gets the money directly in his/her account.

3. Online transfer of money using IFSC code is convenient and does not charge any extra money.

4. IFSC code reduces the possibility of fraud or loss of funds.

5. Both the account holders will get a notification of the transaction via SMS or email.

6. Given that the IFSC code is important in online money transfers, it has made banking easier for the users.

IFSC code plays a vital role in electronic money transfer. It is extremely important to have an accurate IFSC code of the bank branch where the money needs to be transferred because one wrong digit in IFSC code can transfer your money to someone else’s bank account or cancel the transfer altogether.

Concluding the above topic, it is well understood how a Bank IFSC code plays an important role in online money transfers. Also, it is playing a vital role in making the Indian banking system more secure, efficient and well organized. If you are someone who still stands in long queues for money transfers, it is advised to make use of NEFT and RTGS methods online to make your life simple. Start with finding the IFSC code of your respective bank branch using ‘IFSC code finder tools’ available online and make a smarter step towards improved banking.