IFSC Code

IFSC Code aids in the correct identification of the sending and receiving bank branches, minimizing the risk of errors and delays in transactions. Moreover, understanding IFSC codes enhances transparency and efficiency in the financial system.

Primary Features of IFSC Code

IFSC Code has revolutionized the way financial transactions are processed in the country, ensuring swift, secure, and accurate money movement. The table shown below presents the primary features of the IFSC Code.

An IFSC code is an 11-character alphanumeric code with a specific structure:

• First 4 characters: Represent the bank name (always in uppercase letters).
• Fifth character: Always a ‘0’.
• Last 6 characters: Represent the branch code (usually numeric but can be alphanumeric).

Example:

• SBIN: Represents State Bank of India.
• 0: Placeholder.
• 0005943: Represents a specific branch of SBI.

Importance of IFSC Code

The IFSC code’s significance lies in its ability to simplify and secure fund transfers. Knowing the importance of IFSC codes is essential for anyone engaging in banking activities within the Indian financial system.

• Unique Identification: Each bank branch has a distinct IFSC code, ensuring accurate identification of the receiving bank and branch.
• Error Reduction: Minimizes errors in fund transfers by eliminating manual entry of bank and branch details.
• Efficient Transactions: Facilitates smooth and speedy electronic fund transfers through NEFT, RTGS, and IMPS.
• Security Enhancement: Contributes to a secure financial system by reducing the risk of fraudulent transactions.
• Convenience: Enables hassle-free fund transfers without the need for physical bank visits.
• Transparency: Improves transparency in the financial system by providing a standardized code for all bank branches.
• RBI Oversight: Helps the Reserve Bank of India (RBI) monitor and regulate electronic fund transfers effectively.

Ways to Find the IFSC Code

Finding the IFSC is essential for anyone conducting electronic fund transfers within India’s banking system. With an IFSC Code, you can accurately identify the specific bank and branch involved in a transaction and ensure that your money reaches its intended destination securely.

• Check Your Cheque Book: The IFSC code is usually printed at the top left corner of your cheque leaf.
• Check Your Passbook: Some banks print the IFSC code on the front page of your passbook.
• Bank’s Official Website: Most banks have an online facility to find the IFSC code. You might need your account number or branch details.
• RBI Website: The Reserve Bank of India (RBI) maintains a database of IFSC codes. You can search for it on their website.
• Bank Branch: You can visit your bank branch and request the IFSC code.

Ways to Transfer Money Online Using IFSC Code

The IFSC Code acts as a unique identifier for bank branches. Transferring money online using the IFSC code is cost-effective since banks offer free or low-cost online transactions.
Here are some common methods to transfer money online using the IFSC code.

NEFT (National Electronic Funds Transfer)

• Used for transferring funds between bank branches within India.
• Batch-wise processing typically takes 2-3 hours.
• Requires beneficiary’s name, account number, and IFSC code.

RTGS (Real-Time Gross Settlement)

• For large-value transactions.
• Funds are transferred instantly.
• Requires beneficiary’s name, account number, and IFSC code.

IMPS (Immediate Payment Service)

• For instance, 24/7 money transfers.
• Requires beneficiary’s mobile number or MMID (Mobile Money Identifier) along with IFSC code.

Steps to Transfer Money Online Using IFSC Code

Here are the steps involved in transferring money online using the IFSC Code.

• Step 1: Log in to your internet banking account.
• Step 2: Navigate to the ‘Fund Transfer’ or ‘Transfer Money’ option.
• Step 3: Select the desired transfer method (NEFT, RTGS, or IMPS).
• Step 4: Add beneficiary details:
  • Beneficiary’s name
  • Beneficiary’s account number
  • Beneficiary’s IFSC code
  • Other details as required (e.g., mobile number for IMPS)
• Step 5: Confirm the details and enter the transaction amount.
• Step 6: Authorize the transaction using your Internet banking credentials or OTP.

Note: Different transfer methods have transaction limits and some banks may charge fees for these transactions.

Steps to Register the Beneficiary’s Account

Registering a beneficiary’s account simplifies and speeds up the process of transferring funds. Also, it reduces the risk of errors in account numbers or IFSC codes, ensuring funds reach the correct recipient promptly.

• Step 1: Log in to your internet banking or mobile banking app.
• Step 2: Navigate to the ‘Fund Transfer’ or ‘Transfer Money’ section.
• Step 3: Look for the ‘Add Beneficiary’ or ‘Add Payee’ option.
• Step 4: Choose the type of account (savings, current, etc.).
• Step 5: Enter the beneficiary’s details: Name, Account number, Bank name, IFSC code, and Mobile number (optional, but recommended for IMPS)
• Step 6: Confirm the details carefully.
• Step 7: Authenticate the process by entering the OTP that was sent to your registered mobile number or email.
• Step 8: Confirm beneficiary addition.

List of IFSC Codes for Top Banks

The table below shows the list of IFSC codes for branches of leading Indian banks in Bangalore. Knowing this will help with quick and accurate financial transactions.

If you are looking for more on Bank Savings Schemes, you can check them out at the links below: