The Importance of IFSC Code in Your Fund Transfer

Have you ever wondered that a day will come when you will be able to do paperless transactions from the comfort of your home within a few minutes?  Banking sector has revolutionized condemnably with the constant support of IT sector. Just when we thought it was impossible, this fast growing contemporary world (in which saving some time is a luxury) has offered us with a facility of internet banking. Now your bank is just few clicks away from you.

For any online transaction you need an IFSC code. IFSC Code is used for a unique identification of a bank’s branch and it makes transactions safe and secure.

What is an IFSC Code?

The Indian Financial System Code also known as IFSC Code is an eleven digit code that you can usually find on you bank’s sponsored material. This alphanumeric code is assigned by RBI to identify every bank branch uniquely, that participate in NEFT (National Electronic Fund Transfer) system in India. Usually, the first four characters identify the bank’s name, the fifth character is zero (0) and the last six characters identify the branch of the bank.  All the electronic payment system applications such as NEFT, RTGS (Real Time Gross Settlement) and CFMS (Centralized Funds Management System) require these codes.

How to Find IFSC Code?

It is mostly printed on the cheque book leaves. All the banks participating in inter- bank electronic fund transfers have the bank-wise list of IFSC Code.  A list of IFSC Codes is also available with RBI (Reserve Bank of India).

IFSC code is only for the domestic transactions. Every bank branch in India whether public sector or private sector will have this unique alphanumeric code that acts as the identifier for the bank branch. You can also find IFSC on the third party sites like Paisabazaar.com. Process is quite simple, just log on to Paisabazaar.com and navigate to the IFSC Code locator in the tools menu. Then enter the details such as bank name, branch name, state and city to get the IFSC Code instantly.

Importance of IFSC Code

  •         Safe and secure


Transferring funds using IFSC code is a safe and secure process. Every transaction using IFSC Code will have a start and an end point. Reserve Bank of India can easily track where funds have been transferred from and where they end up. RBI can monitor all the transactions easily.

  •         Fast and efficient


You no longer have to take a trip to bank just to process a money transfer. No matter where you are in the world. You can make the transaction anywhere.  You can pay your bills transfer your funds and check your bills from the comfort of your home. All thanks to IFSC Code. IFSC transfers funds in a fraction of second. This is very helpful when you need to send money in some emergency.

  •         Less fraudulent activities


Every bank has a unique IFSC Code. No two banks can have a same code. Each branch and their respective banks will have a different IFSC Code. This makes a process safe and secure from the cyber crime. Online banking is protected with a password which reduces the risk of any mistake or fraud.

  •         Paperless transactions


All transactions using IFSC Code are paperless as they don’t require any cheque or demand draft. Hence, it reduces the human errors in terms of wrong IFSC code, wrong account number or mismatch of signature. Especially, when you’re in a hurry, you may end up making several mistakes which can cost you a great loss of monetary value and your precious time. Thus, purely paperless transaction ensures a safe and comfortable online transactions saving your time and cost.

IFSC Code is the base of any bank. IFSC Code has made the online transactions safe and also helped the users to save a lot of time. It is always advisable to cross check the IFSC Code you entered as the chances of making a mistake while entering any code are quite high. Entering wrong code may lead to unpleasant consequences. Sometimes, the money reverts back to the sender’s account and in some rare cases, the wrong account gets credited. Though, there are ways to recover the misplaced funds but for that the users have to go through a long-winded process. 

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