What is Bank IFSC Code?

What is Bank IFSC Code?

IFSC stand for Indian Financial System Code. It is an eleven character alphanumeric code used to identify every bank branches uniquely and is assigned by RBI. With the growing use of internet and computers in every field, its use has also increase in doing online payments. Banks now a days themselves provide the facility of transferring money from one place to another online. This not only saves money but also time. This is quite an easy as well as safe method of money exchange. It has revolutionised the way how payments are being done through banks now a days.

IFSC codes are used by banks who participate in the Real Time Gross Settlement (RTGS) and the National Electronic Funds Transfer (NEFT) systems. The first 4 characters of the code represent the entity, the fifth position has been defaulted with a '0' (Zero) for future use and the last 6 character signifies the branch identity.

Banks branches which perform electronic funds transfer in India, keep a bank-wise lists of IFS Codes. Every bank is also asked to print its IFSC code on the cheque book. You can also get the code online on various websites. It is also available on the Reserve Bank of India website. You can find list of all bank IFSC code there. The user have to first select the bank name, then the state, then the district and then the name of the branch of the bank to get the all the details including IFSC code and address of the bank. To perform any online banking transaction this code is highly essential.

IFSC code can be used for different online mode of payments for transactions like Mobile bill payments, loan EMI payments, insurance premium payments, flight tickets booking, buying mutual funds, bonds online shopping, online Share/equity Trading a/c Fund Transfer, Bus and Train ticket booking, etc. While performing any online transaction, IFSC is used by the NEFT & RTGS systems to direct the messages to the destination banks / branches. There is a unique IFSC code for each branch.