If you have transferred money to any bank account, you must be familiar with the term “IFSC code” and might have seen it on your bank passbook. Every bank gives its customers a specific digit code known as the IFSC code. For example, SBI has its own SBI IFSC Code. If you do not know your IFSC code, you can easily find it using an IFSC code finder online. Since online banking dominates the market, all the banks have improved the accuracy and security of such transactions. You only need to know the IFSC code of the bank you are transferring money.
What is an IFSC code?
Indian Financial System Code (IFSC) is a code. When sending money via RTGS, NEFT, or IMPS, the IFSC code is useful. It is primarily used to identify every bank branch that is a part of the Reserve Bank of India’s NEFT network.
The eleven digits of the IFSC code are divided into subparts. For example, for SBI IFSC Code, the digits would be SBIN0005943. The first four alphabetic characters identify the SBI IFSC Code; the last six numeric or alphanumeric characters are the branch code. The fifth character in every IFSC code, which is always zero, is always the same.
How do you get your IFSC code?
It is simple to search for the IFSC code. For instance, if you have a State Bank of India (SBI) account and have an SBI IFSC Code, the IFSC number will be printed on both the front page of your bank passbook and your chequebook. If you have your bank account and are still unaware of your IFSC code, you can easily find your IFSC code online through the IFSC code finder.
Why do you need an IFSC code?
Once you get your IFSC code from the IFSC code finder, you also need to understand how useful it is and for what it is used. Following are some of the importance of an IFSC code.
- The RBI can use this straightforward code to track, maintain, and keep track of all electronic financial transactions, including RTGS, NEFT, and IMPS.
- It serves as a confirmation parameter for incoming funds and ensures they have been correctly routed.
- Without an IFSC code, a fund transfer cannot be started. Additionally, it is environmentally friendly because everything is done online and without paper.
- It helps in initiating a less time-consuming process.
- All kinds of payments, such as travel and paying bills, can be easily done with an IFSC code.
How can you transfer money using an IFSC code?
NEFT, RTGS, and IMPS are the three main electronic fund transfer methods that employ IFSC codes to transmit money. Customers can move funds from one account to another using these electronic fund transfer methods swiftly, easily, and without errors. If you have a bank IFSC code, for example, SBI IFSC Code, do you know how you can use that 11-digit number to transfer money?
Here are the three methods through which you can transfer money using an IFSC code:
- NEFT – Funds can be paid via National Electronic Fund Transfer (NEFT) to the accounts of all Indian banks that support NEFT. All NEFT settlements are in batches.
- RTGS – A cash transfer method called Real Time Gross Settlement (RTGS) makes it possible to instantly send and receive money on an individual basis.
- IMPS – A real-time electronic cash transfer mechanism called Immediate Payment Service (IMPS) allows money to be transferred at any time, around the clock, to a payee’s or beneficiary’s account.
Conclusion
Using an IFSC code finder or the account number, you can find the IFSC code. You must enter the SBI IFSC Code number for the bank holding your account if it is in India. All Indian banks use it to set up electronic payments, including NEFT and Real-time Gross Settlement (RTGS) payments.
