Just like a pin code is required to find a particular place such as (pin code of Delhi, pin code of Jharkhand), in the same way IFSC code is required for different bank branch, every bank and its branch has different IFSC code, such as (IFSC code of HDFC) (IFSC code of PNB). An IFSC Code is given by the RBI (Reserve Bank of India) to all the banks and its branches. You can find the IFSC code in the account passbook, cheque book, and on the RBI website. IFSC has different uses for e.g., during the e-fund transfer, you will require IFSC code.

What is an IFSC Code?

The full form of IFSC code is Indian Financial System Code; it is a unique alphanumeric 11-digit number which is used during the e-transfer of money for the transactions of IMPS, NEFT, and RTGS. You can easily find IFSC code on the account holder’s passbook, cheque book, and also on the Reserve Bank of India’s website. This code is allotted to each branch of the bank by the reserve bank of India. You won’t be able to work on most of the internet banking without an IFSC code as it requires IFSC code for transactions.

Commonly, RBI does not make any kind of update or change with regards to IFSC code. Lately, SBI (State Bank of India) changed the Indian Financial System Code in all the branches after its merger with five associate banks.

Importance of IFSC Code

There are three benefits of Indian Financial System Code:

  1. It Provides Identification: This code is helpful in identifying the bank and its branch. Additionally, it provides unique identification to every bank and its branch.
  2. Elimination of Errors:it comes to use in eliminating the error during the e-fund transfer.
  3. E-transfer:An IFSC code is useful in making the electronic payment easier – NEFT, IMPS, and RTGS.

Use of IFSC Code?

This code has its own importance as it is used by the Indian Financial System to enable online money and electronic transfer. This code helps you easily transfer money through NEFT and RTGS. However, when it comes to using transfer funds through UPI, Aadhaar number is required in place of this code.

How to find the IFSC Code?

You can find the Indian Financial System Code by using three methods:

  1. You can find it on the cheque leaf and bank passbook that are provided by the respective bank.
  2. Go through the website, all the bank codes are listed on the Reserve Bank of India’s website.
  3. One more way to find the code is, go on the official website of the respective bank.

What is a MICR Code?

Magnetic Ink Character Recognition or MICR Code is a reliable, fast, effective, and innovative technology. It is used to authenticate the legality and credibility of the paper documents during the process in banking. It is a nine digit numeric code that you can find on the bottom of the cheques. The same concept is found on MICR code which is followed in the barcodes except they can be easily read by humans.

This code is used by banks in order to verify the cheques before the process of clearance. However, this technology is used for other bank documents also as it is authentic. A MICR code includes details of cheque number, bank code, account details, and control indicator. A MICR code enables efficient, quick, and error-free processing of the cheques that is the reason it’s is used.