IFSC or Indian Financial System Code is an 11-digit unique identification given to every bank branch by the Reserve Bank of India (RBI). IFSC is an alphanumeric code that is mandatory for making online transactions through National Electronic Funds Transfer (NEFT), Real Time Gross Settlement (RTGS), and Immediate Payment Service (IMPS) systems. It helps to track the source and destination bank branches for payments.

Nowadays, since transactions are made online, and most banks provide online transactions through UPI and net banking, IFSC codes are mandatory to keep the transactions secure and check the accuracy of the payment. Hence, payments through NEFT, RTGS, or IMPS can’t be initiated without a valid IFSC code.

IFSC Code: Key Features

Helps in identifying a specific bank branch
Assist in reducing or eliminating the chances of errors in fund transfer
Used in all digital payment options like NEFT, RTGS, and IMPS

Format of Indian Financial System Code (IFSC)

While the first four characters of the IFSC code are a signifier of the bank in alphabetic form, the last six characters are the identifier of the branch and are always in numeric form. The bank code and the branch code are separated by a “Zero”.

Bank Code: The first four alphabets represent the bank. For example, PUNB for Punjab National Bank, and SBIN for State Bank of India.
Zero: The gift character of an IFSC code is always a ‘0’, used as a separator.
Branch Code: The last six characters are numeric, and uniquely identify the specific branch. It is assigned by the Reserve Bank of India to every bank branch.

A	B	C	D	0	1	2	3	4	5	6
Bank Code				0	Branch Code

The RBI issues These IFSC codes, ensuring easy digital transactions by clearly recognizing every branch in India’s banking network.

Example of IFSC Code

For example, IFSC for the I P Extension branch of State Bank of India is SBIN0011561, where SBIN represents the bank name, 0 is for future use, and 011561 denotes the branch code.

Sample IFSC Codes of Top Banks in India

Bank	Branch Name	IFSC Code
Kotak Mahindra Bank	Kotak Mahindra Bank Limited, Delhi - Karol Bagh, Delhi	KKBK0000191
Punjab National Bank	Punjab National Bank, Mumbai, Opera House, Mumbai	PUNB0006700
HDFC Bank	HDFC Bank, Tulsiani Chambers - Nariman Pt, Mumbai	HDFC0000001
State Bank of India	State Bank Of India, Mumbai Main, Mumbai	SBIN0000300
ICICI Bank	ICICI Bank Limited, New Delhi - Rohini, Delhi	ICIC0006298
Bank of Baroda	Bank Of Baroda, Dwarka, New Delhi, Delhi	BARB0DAWARK
Axis Bank	Axis Bank, Mumbai Branch, Mumbai	UTIB0000004
YES Bank	Yes Bank, Janakpuri New Delhi	YESB0000522
CITI Bank	Citi Bank, Connaught Place, Delhi	CITI0000002
Dena Bank	Dena Bank, Head office, Mumbai	BKDN0999999

Benefits of IFSC code

Increased Security: The IFSC codes act as an additional layer of security to transaction processes. With unique codes, the chances of errors and fraud or misrouting of funds are significantly reduced.

Economical: Using IFSC codes reduced the amounts levied on transaction fees and lower operational charges. Through efficient and correct transactions, there is a low chance of penalties or additional charges.
Quick Transactions: By using IFSC codes in transactions, transfers can be made faster. Banks can immediately identify and verify the transactions, reducing the processing time and faster fund transfer.
Supports automation: IFSC codes facilitate and streamline the automation of recurring payments.

What is the Importance of IFSC code?

These are the importance of IFSC code in the banking network:

Secure and Error-free transactions: IFSC code helps in identifying the bank and branch of the receiver where his/her account is located. IFSC code is important to ensure that the transfer made is secure and accurate, and to avoid any error.

Paperless transactions: IFSC promotes paperless money transactions through numerous electronic payment tools including RTGS, IMPS, and NEFT. These tools allow immediate or same-day transactions across different banks without the need for physical cheques or cash. Hence, digital transactions are both quick and eco-friendly.

Accountability and Transparency: With IFSC, RBI can monitor and control all digital transactions in the financial and banking system. IFSC helps with tracking and monitoring payment transfers, hence reducing the chances of fraud or misuse of funds, and enhances accountability and transparency in the banking system.

Easy accessibility to account: IFSC helps in making various online transactions, from online bills, and EMI, to insurance premiums and taxes. Further, it allows individuals to make online purchases and transfer money to individuals. Therefore, it allows individuals to access their bank accounts anytime and anywhere and enjoy a seamless banking experience.

How to find IFSC Code of your branch?

There are four easy and simple methods to find the IFSC of your bank branch.

Bank Account Passbook: Check for the front sheet of your bank passbook. It has all the necessary details including account number, name, address, IFSC code, and date of birth.
IFSC Code in Cheque Leaf: On every cheque leaf, the account number, IFSC code, cheque number, and MICR code, along with the branch address are mentioned. Usually, the IFSC code is located on the top-left corner of the cheque leaf.
RBI website: You can search for your IFSC code on the RBI website. The website has a tab for ‘IFSC’, where you can find IFSC code by entering the bank and branch name.
Bank website: You can also find the IFSC code on the bank’s website. Almost all banks have a branch locator tool that enables users to find the IFSC code by searching the branch name in the search bar.

How Does IFSC Code Work?

Here’s how IFSC codes are used in bank transactions:

Verify the IFSC code: Find the 11-digit IFSC code specific to the recipient’s bank branch. You can find the IFSC code on the recipient’s bank passbook, chequebook, statement, or bank’s website.
Start the transaction: When you make a digital transfer like NEFT, RTGS, or IMPS through your bank’s app or net banking software, you’ll be brought to enter the receiver’s account number and the IFSC code.
System verifies the branch code: The bank’s system uses the IFSC to recognize the specified bank branch. While the first 4 characters specify the bank name, the last 6 characters identify the branch code, and the ‘0’ is the fifth character being used as the separator.
Payment confirmation: Once you have entered the necessary details, proceed to confirm the transfer. The IFSC code guarantees that the transfer is directed to the appropriate bank branch.
Transaction completion and tracking: The RBI National Clearing Cell tracks the transaction and ensures accuracy and security by checking the IFSC code and matching it with the beneficiary account.

Online Money Transfer using IFSC Code:

The IFSC code is required in primary three modes of electronic fund transfer- NEFT, RTGS, and IMPS. These modes of fund transfer allow customers to make payments from one bank account to another seamlessly.

Choosing the digital transfer system reduces the chances of errors in a transaction because the transaction is authorized only if the details like the receiver’s bank-specific IFSC code and account number are given and are accurate.

NEFT: NEFT stands for National Electronic Fund Transfer. It allows the transfer of funds between banks in India and hence is a popular money transfer system. In NEFT, IFSC codes are a must to ensure that the money is securely transferred from one bank to another. Other than the IFSC code, beneficiary name, account number, and account type are also important to complete the transaction.

RTGS: It stands for Real Time Gross Settlement. It is another easy and popular option for fast transfer of funds from one bank to another. In RTGS, the IFSC codes work the same way as in the case of NEFT- helping to identify the participating bank branches. RTGS fund transfers are generally used for high-value transactions and are done immediately. In RTGS transactions, the recipient’s name, account number, IFSC code, and transaction amounts are required to be filled.

IMPS: IMPS, an acronym for Immediate Payment Service, is again a popular method of digital transactions. It is relatively a new payment option in India (founded in November 2010). Through this service, funds can be transferred immediately and across all prominent banks of India via mobile phone, ATM, or online. It is highly safe, fast, economical, and does not restrict the maximum amount of transfer. However, an IFSC code is required to initiate an IMPS transaction.

How Can One Make Transactions USing IFSC Code of Bank Account?

There are two modes of making transactions, offline and online mode. While the former uses visiting the bank, filing the form, and waiting for the processing, the latter is done digitally using IMPS, NEFT, and RTGS methods and is reliable, quick, and secure as well.

To make online transactions, the individual is required to meet these requirements:

The individual needs to be registered on the bank’s net banking service.
The individual must be registered for third-party transactions. (In this context, third-party means a recipient from a different bank, other than yours).
Register the receiver’s account to which the transfer is to be done.

Information on Fund Transfers with IFSC

Here is the information on Fund Transfers with IFSC:

Transaction Charges	Amount	NEFT	RTGS	IMPS
Fund Transfer Charges	Rs. 2,00,000 - Rs. 5,00,000	Rs. 2.50	Rs. 24.50	Rs. 5.00
	Rs. 10,000 – Rs. 2,00,000	Rs. 15.00	Rs. 26.00	Rs. 10.00
	Above Rs. 2,00,000	Rs. 25.00	Rs. 51.00	Rs. 15.00

Note: Customers might check the bank’s website for charges.

Operating Time for Various Fund Transfer Modes

Payment Mode	Timings
NEFT	8 A.M to 7 PM (weekdays)
RTGS	9 AM to 4:30 PM (weekdays)
IMPS	24 hours (365 days)

FAQs

Q: What is the full form of IFSC?

Q: Are IFSC and branch codes the same?

Q: Can I share the IFSC code?

Q: How many digits does an IFSC code have?

Q: Who creates the IFSC code?

Q: Can we transfer money without the IFSC code?

Q: Can I find the IFSC code on my bank passbook?

Q: Is IFSC and RTGS the same?

IFSC and RTGS are usually used interchangeably to refer to the same code, which is the 11-digit Indian Financial System Code (IFSC). RTGS stands for Real Time Gross Settlement and is a kind of payment method that requires an IFSC code to complete the transaction.

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