What is the full form of IFSC?
The full form of IFSC is the Indian Financial System Code. IFSC code is an alphanumeric code of 11 characters, which helps to smooth the progress of electronic payments in India. For every bank in India, it can be used to identify and classify each branch. An individual may immediately describe a bank and its branch within the given IFSC code. This code is explicitly mentioned in the cheque book.
An IFSC code recognizes and differentiates every branch of the bank involved in India’s two significant methods of settlement and payment.
- RTGS (Real-Time Gross Settlement) – The beneficiary bank provides direct instructions for the transfer. The payment is gross, so each transaction is performed individually. These payments are final, and can not be withdrawn.
- NEFT (National Electronic Fund Transfer System) – NEFT is a centralized nationwide payment method owned and controlled by the Reserve Bank of India ( RBI). It easily transfers money between banks across India. A bank branch should be NEFT enabled to permit a customer to transfer the funds to another party.
The main difference between NEFT and RTGS is that, unlike RTGS, the movement of funds occurs in batches. Hourly intervals are fixed for this reason, and the settlement is assigned to one such time slot.
How can you get the IFSC code of a specific branch?
To obtain any bank’s IFSC code, the person must provide the following details;
- The name of the bank
- Name of the state where the bank is located
- Name of district
- Name or address of the branch
Importance of IFSC code
- RBI provides the IFSC Code for the identification and classification of banks and their branches that provide RTGS, IMPS and NEFT facilities.
- IFSC code allows RBI to verify and evaluate financial transactions without disruption and error.
- RBI can administer and handle all online banking transactions via IFSC code, explicitly RTGS, NEFT and IMPS.
IFSC code format
- The IFSC code has 11 characters.
- The first four letters inform about the bank ‘s name and the last seven letters indicate the number of the branch.
- The IFSC code is SBIN0000738 in this SBIN describes the bank name, and the branch number is denoted by 0000738.
- The IFSC Code is used to transfer money from one branch of the bank to another branch via RTGS or NEFT, in other phrases, to make a cash transfer via an online and digital method.