What is an IFSC Code?

What is IFSC Code?

IFSC Code means Indian Financial System Code. It is used in NEFT and/or RTGS fund transfer transactions to identify the the bank Account's Bank and Branch details in a unified manner.

IFSC code is a 11 character Alpha Numeric Code assigned to each BANK;s branch in India by RBI. This Code will have first 4 Characters as Alphabets which indicates the BANK name and these 4 characters will be assigned by RBI. Remaining 7 characters are usually numeric but can be alphabetic. These IFSC codes are widely used in India to transfer the money through NEFT and RTGS. You can easily find the IFSC Code on your cheque book below the branch details.

IFSC CODE Format/Syntax

1 2 3 4 5 6 7 8 9 10 11
BANK CODE
[4 CHARACTERS /
ALPHABETIC]		 BRANCH CODE
[7 CHARACTERS
NUMERIC
or ALPHABETIC/ALPHANUMERIC]

IFSC Code Explained

The Indian Financial System Code (IFSC) is an 11-character alphanumeric code used to uniquely identify every bank branch in India. It's a crucial element for electronic fund transfers within the country, particularly for NEFT (National Electronic Funds Transfer) and RTGS (Real Time Gross Settlement) transactions.

Structure of an IFSC Code

An IFSC code is broken down into three distinct parts:

  1. Bank Code: The first four characters are always letters, representing the bank's unique code. For instance, "HDFC" is the bank code for HDFC Bank.
  2. Zero: The fifth character is always a zero. It acts as a reserved character.
  3. Branch Code: The last six characters can be either numbers or letters. They represent the specific branch of the bank.

Why are IFSC Codes Important?

IFSC codes are essential for several reasons:

  • Error-Free Transactions: They ensure that money is transferred accurately to the correct bank and branch.
  • Online Banking: They are mandatory for most online banking transactions, including fund transfers, bill payments, and more.
  • Regulation and Tracking: The Reserve Bank of India (RBI) uses IFSC codes to regulate and monitor banking operations.

Where to Find Your IFSC Code

You can usually find your IFSC code in the following places:

  • Your bank passbook.
  • Your cheque leaves.
  • Your bank's official website.
  • Online IFSC code directories.

Remember

Always double-check the IFSC code before initiating any online transactions to avoid sending money to the wrong account.