In the Indian banking system, IFSC is known as the Indian Financial System Code. It is an 11-digit serial number, consisting of a unique combination of alphanumeric characters. The numbers can be divided as: the first 4 digits are in alphabetical order, which means the Bank, the fifth number is a single digit 0 (zero), to be used by the bank in the future, and the last 6 numbers are a combination of alphanumeric digits, or just numeric numbers, that identify the bank’s branch. The RBI assigns unique serial numbers to all bank branches that use electronic funds transfer systems.

Reserve Bank of India (RBI)

The RBI, which is the centralized banking authority, also controls the transfer of funds between Indian banks under the RTGS and NEFT systems. The official RBI website displays the list of all banks in the Indian states and Union territories that participate in this system. Banks offering net banking services and participating in the EFT (Electronic Funds Transfer) system must provide bank identification characters to their customers searchbankifsc.

Ways to find the IFSC code

Online and net banking customers must have full knowledge of the beneficiary bank’s IFSC Code to send or receive payments within the country, using the RTGS (Real Time Gross Settlement) and NEFT (National Electronic Funds Transfer) systems. Individuals, businesses, and companies, with or without an account at the bank, can also transfer money, but that bank must participate in the RBI-regulated EFT system. The official website of the Reserve Bank of India provides the complete list of EFT participating banks.

There are different ways to find your bank’s IFSC code. Most banks print these unique characters on the checkbook sheets, but if they are not printed on a check sheet, you can call the customer service of the specified bank and get the IFSC code. The third method that can provide you with these unique numbers is to visit Internet financial sites because there are websites that provide information about bank details, the NEFT status of the bank, the address of the branch, the location of the branch and the IFSC Code.

It is also necessary to remember that the RBI changes the unique identification characters of banks from time to time, and one should contact the bank branch to confirm the identification numbers obtained from third party sources. The wrong code may reject your transfer of payments.

NEFT and RTGS systems

The NEFT and RTGS systems for payment transfers and for receiving funds are supported by the Reserve Bank of India. The basic differences between these two systems include:

NEXT: There is no minimum or maximum limit for the transfer of funds under this system and the money reaches the beneficiary bank within 24 to 48 hours.

RTGS: This system is the fastest mode of payment transfers and payments can arrive in a short time. Transactions are operated in “real-time” and “gross”, and are not grouped with other transactions. The minimum amount for the transfer of funds is Rs. 1, 00,000 or more and the payment is credited to the beneficiary’s account within 2 hours.

You must remember that whatever payment system you are using, the IFSC Code is vital for your fund’s transfer and these unique numbers are valid only for intrabank funds transfers within India and not valid for international funds transfers. You will have to use the SWIFT or BIC code to transfer funds abroad.