Use of IFSC code and how to find it?

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.

Advantages and disadvantages of using internet banking and IFSC code

(NEFT) national electronic fund transfer allows you to transfer your fund in an easy and secure way from one account to another account in India and also saves your enough time as compared to any other mode of transfer. There are no barriers for any firm, corporate, or individual to transfer fund from one branch to another, anyone can do this within a stipulated time without facing any inconvenience.

To complete the process of NEFT, you require payee bank account number as well as IFSC code of concerned branch. You will get this option of IFSC code in the internet banking while transferring the amount. In the beneficiary section, you will have to fill the details of the payee. Be it IFSC code of HDFC or IFSC code of PNB or any other bank. The option of putting IFSC code is there in internet banking which is must for the further process.

Apart from this, there are other modes of transferring fund as well from one bank to another such as RTGS, IMPS etc. In case of international transfer, you require details of swift code or BIC code of concerned bank. After receiving the swift code, you can transfer the money from one country to another after filling the details of the concerned person. In addition to this, if you are Delhi person, separate Pin codes of Delhi will be used for different IFSC code. Each area has the different pin code and so does the IFSC code for that area.

How the process works

1. Customer will need to fill details in the NEFT form to origin bank such as account number, beneficiary name, IFSC code, branch details, and the amount to be remitted.
2. Origin generates a message followed by that is sent to the NEFT service center.
3. NEFT service center operation team forwards the same message to NEFT clearing center (operated by national clearing cell, Reserve bank of India, Mumbai) for the next batch.
4. NEFT clearing center goes through the fund transfer transaction and then prepare accounting entries to be received from origin bank and then credit to destination bank.
5. A message is sent from NEFT clearing center to the destination bank and the same details are passed on to the beneficiary customer bank account.

Deduction as a service charge in case of outward transaction

Transaction up to 10,000rs 2.50rs are charged + (service tax)

Transaction between 10,000 to 1 lakh 5.00rs are charged + (service tax)

Transaction between 1 lakh to 2 lakh 15.00rs are charged + (service tax)

Transaction above 2 lakh 25.00rs are charged + (service tax)

For settlement timing

• Settlement timing of NEFT is currently being done on an hourly basis.
• Monday to Friday (9.00AM to 7.00 PM) 11 settlements are done and on Saturday only 5 settlements are done.
• Any transaction done after this stipulated time will be counted in the record of the next working day.
• NEFT gained great popularity because of these key features that actually works as facilities such as saving time.Anybody from anywhere can save time by opting for this convenient process.

Finally,You will find out the updated NEFT that will allow you to go through the details of branches database such as MICR code, swift code, customer care contact number, branch address details, BSR code, Mail ID, branch location, toll-free number, City, District, contact number etc.