Indian Financial System Code (IFSC), is a unique 11-digit alphanumeric code used for online fund transfer transactions done through NEFT, RTGS and IMPS. You can find the IFSC code on the check page provided by the bank. The Reserve Bank of India (RBI) assigns IFSC codes to banks. Apart from check leaf, you can also find IFSC code on the official website of bank and RBI.
If you are using net banking to transfer money, it is mandatory to enter the IFSC to initiate the transfer. Unless there is a merger, banks do not change or amend the IFSC code.
If you want to transfer money from your account to another account, all you need is the beneficiary name, bank branch, their account number and IFSC code. You should keep in mind that IFSC code is different for every bank branch and hence you should enter the correct code so that the possibility of your funds going to someone else's branch is eliminated.
Having the account number and IFSC code ensures that you can transfer funds from your account to another account at any time in a hassle-free manner.
Magnetic Ink Character Recognition (MICR) is a 9-digit code that helps to identify a particular bank branch that is part of the Electronic Clearing System (ECS). This code can be found on the check page issued by the bank and is usually printed on the passbook issued to the account holder.
The main purpose of MICR code is to clear checks deposited in machines. Also helps in avoiding code errors.
Out of nine digits, the first three digits identify the specific city, the next three digits identify the specific bank code and the last three digits represent the bank branch code.
For example MICR code of the SBI branch in Kolkata is '700002021. Here, the first 3 digits '700' are used to identify the specific city, the next three digits '002' represent the specific bank code and the last 3 digits '021' designate the bank branch code. MICR codes are mainly used for processing and clearing cheques, which is done by machines. The 9-digit code helps eliminate errors in the clearing process, helps speed up the process as well as makes check processing more secure.
In case of the bank IFSC code, it varies from branch to branch. However, the IFSC code of a particular bank's credit card will remain the same across the country.
IFSC codes are the basic unit of any online inter-bank money transfer in India and are the surefire way to validate all such transactions. With the right IFSC code information, sending and receiving money online becomes simpler and faster than expected.
There are many resources available online that help you find the IFSC code for the particular requested bank. And let's face it – you can only check this while effecting online transactions. Similarly, Getifsccode provides a comprehensive tool to help you in quick and accurate IFSC code search.
Let us take an example of Canara Bank IFSC code to better understand what IFSC code is and how it works in banking transactions. The IFSC Code of the Chandigarh branch of Canara Bank is CNRB00001995.
Let us now understand how IFSC works. When a fund transfer is initiated to a particular payee, he has to provide the account number and branch-specific IFSC code. Once the remitter provides these details, the money is sent to the account holder and IFSC helps in avoiding any errors in such transactions.
Apart from fund transfers, IFSC codes can also be used to buy insurance and mutual funds through net banking. The National Clearing House of the Reserve Bank of India (RBI) keeps track of all the transactions and the IFSC code helps the RBI to keep track of the transactions and execute fund transfers without any errors.
IFSC code can also be found on your check book or bank passbook. One can also find the IFSC code of their bank branch in the monthly account statement. The IFSC code of every bank and branch is unique.
Most of the above discussions focus on ordinary bank cheques. This mainstay of the banking world is a combination of several components that help authenticate whether it is genuine or not and allows us to have complete confidence in its usability.
On a normal bank cheque, it is mandatory to have the IFSC code listed. IFSC code will vary from bank to bank. In our example image: We are displaying the location of the IFSC code on an HDFC cheque.
Displays in the typed font below the check in a special font style. It is mainly used to track checks and for other administrative purposes.
It is displayed next to the check number. Both the check number and the MICR code are displayed in a unique font and ink, and the latter can only be picked up by a magnetic character ink reader.
We need an IFSC code because it helps the RBI monitor all the banking transactions without any mistakes. A simple IFSC code can help RBI track, monitor, and seamlessly maintain all financial transactions done through NEFT, RTGS, and IMPS.
For bank customers, the IFSC code is important as most electronic fund transfers cannot be initiated unless the beneficiary/payee's IFSC code is provided along with the bank account number.
IFSC code plays an important role when transferring money from one account to another through methods like IMPS, NEFT and RTGS. All these options are basically related to inter-bank money transfer but perform this function in different ways. The common thread among these different options is the bank IFSC code system.
IFSC code can be used to transfer funds using three electronic fund transfer modes NEFT, RTGS, and IMPS. This type of electronic funds transfer enables customers to easily transfer funds from one account to another.
Choosing an electronic transferring system reduces the chances of error in transactions as fund transfers are authorized only when accurate details such as the recipient's bank-specific IFSC code and bank account number are provided.
If the person knows his way around banking transactions, he already knows that there are two main forms of fund transfer. One is the old-fashioned physical method, in which you go to the bank and deposit a cheque. While the other is electronic way using methods like IMPS, NEFT, or RTGS.
When working in the old school 'bank-to-the-bank' way, one does not need to register a beneficiary. However, the electronic method is a little different and also quite safe.
To transfer money with the help of technology, the individual is required to fulfill the requirements given below:
Almost every bank in India follows its own policy regarding third party money transfers. The thing to note here is that the processes remain more or less the same, except for the fact that they are expressed slightly differently.
For example, let's take a look at the process at HDFC Bank. The steps involved are:
To register a third party beneficiary in respect of transfer of funds you need to follow the steps given below:
Transferring money electronically with the help of IFSC code is a simple process once the person has set it up. The process to transfer money through net banking and mobile banking is given below:
Here's how to transfer money from one bank account to another using IFSC code through mobile banking:
It is a new payments architecture launched by the Reserve Bank of India under the leadership of former Governor Raghuram Rajan with the support of tech giant Nandan Nilekani. In short, UPI is being referred to as the next-generation payment method, which is expected to leverage the growing power of smart phone technology and the proportionate growth of smart phone users in the country. It enables to transaction of money between any two bank accounts with the help of smartphones. While the UPI payment method allows online and offline payments like net banking and card swipe, it is much more intuitive and sophisticated at the same time.
To e-transfer funds from one account to another, you need to follow the steps given below:
