What is IFSC code?
IFSC code is mainly an 11 digit unique code in which some English words and some numbers are also added. Here it is different for each branch. This code is exclusively used to transfer or receive funds on NEFT, RTGS and IMPS online platforms. It is provided by RBI (Reserve Bank of India). RBI has given a unique IFSC code to every branch, through this code the bank gets services like electronic funds transfer. It is especially used to locate the branch easily, that is, if you have to transfer money between two bank accounts with the help of IFSC code, then you will need the IFSC code there. Here the code is very important, only through this the recipient is identified correctly. And through this the branch can also be traced. The code is entered here in every check book. Overall, through this code any specific branch can be easily identified in no time.
What is the full form of IFSC?
The full form of IFSC is “Indian Financial System Code”.
Why is IFSC code necessary?
IFSC code is very important, it not only identifies the bank branch but also there is no problem in transferring funds. This makes it a very easy way to make electronic payments. Online fund transfer services like UPI have also eliminated the need for IFSC code, but when any user has to transfer a large amount or pay a huge amount, then IFSC code must be used. If you send money through IFSC code, then first of all the bank finds out which bank you are sending the money to and where its branch is located, i.e. at which location the branch is located. All these things can be known only through IFSC code. RTGS, NEFT and IMPS, these three methods in which this code is used, these three methods are very popular in transferring funds. Of these, if you use RTGS, NEFT, then first of all you need the name of the beneficiary and bank account number, name of the bank and branch and finally IFSC code. Your funds are successfully transferred only after filling all these details, but this code is not required in IMPS, in that you can transfer funds by using MMID code and MPIN.
What are the benefits of IFSC code?
IFSC code is very important. Let us try to know about its benefits through the following means-
1. IFSC code also protects you from many types of online fraud cases. Here the bank and branch have an identity.
2. You can also easily pay bills online using the system covered under IFSC code.
3. You must know the IFSC code to identify your bank and branch. According to which you can check the location of your bank, branch in a few seconds.
4. When money is sent through IFSC code and the recipient receives a notification if the payment is successful.
What are the ways to transfer money online with the help of IFSC code?
Money can also be transferred online through IFSC code. Some examples are given below. Let us know more in detail-
1.) National Electronic Funds Transfer (NEFT)-
If you use this method, then first of all you should know the name of the recipient, beneficiary bank branch as well as the account type and account number to whomever you want to send money.
2.) Real Time Gross Settlement (RTGS)-
This method is used in immediate and high value transactions. If you want to send money to any person, then first of all his name, account number, finally IFSC code is very important. After filling all these information, if your IFSC code is wrong then your payment may also fail. Therefore, IFSC code should be entered correctly and after checking.
3.) Immediate Payment Service (IMPS)-
If you make payment using this method then you will have to use IFSC code in this method also.
From these things you must have guessed how important IFSC code is.