The Indian Financial System Code (IFSC) is a unique eleven-digit number which is a combination of alphabets and numerals. This code is used to transfer funds online for National Electronic Fund Transfer (NEFT), Immediate Payment Service (IMPS) and, Real-Time Gross Settlement (RTGS) transactions. The IFSC code of each bank branch is assigned by the Reserve Bank of India. The IFSC code can be seen on the Cheque book and account holder’s passbook issued by the Bank. Almost everyone in our circle depends on online modes. People feel more convenient in transferring funds online that has certainly made their life easier. National Electronic Fund Transfer (NEFT) is one of the most widespread online methods of transferring funds from one bank to another. In this method, money can be transferred as different batches.
When we make online fund transfers through NEFT, IMPS or, RTGS, please ensure that the IFSC code that we entered is correct along with the beneficiary’s name and account number. The first step that we have undertake for making the online fund transfer is to register the person’s bank account to whom we want to transfer money under the list of payees or beneficiaries to our bank account. For the registration purpose, we need to provide the details regarding the beneficiary’s name, bank name, account number, and the IFSC. While making an online fund transfer it is mandatory to add the payee’s name as per the regulations of Reserve Bank of India. Some banks cross matches the beneficiary’s name which is used as a precautionary measure to ensure that the funds are transferred to the correct account, and it is not a mandatory procedure.
As we all know that IFSC is the combination of eleven-digit alphanumeric unique code, which is commonly used to each branch of every bank in India. Let’s quote an example of this. The IFSC code of State Bank of India (SBI) is “SBIN0XXXXXX”. The first four characters stand for the bank, the fifth digit is always “0”, and the last six digits represent the branch code.
Usually, there is less chance for making an error in the IFSC code because most of the banks ask the customer to choose the name of the branch from a dropdown list, and also, they provide an option to write the IFSC code too. There is a possibility of making two kinds of errors, the first one is the fund transfer. ie, if we want to transfer funds from the Delhi branch of SBI to the Chennai branch in this case, the money transfer will most likely happen that the other details we entered are correct. And the second aspect is that we have to transfer money to SBI but we choose IFSC of Axis bank. In this case, whether or not the fund transfer happens will depend on whether the Axis has an account with a matching account number and the chances of something like this are low.
Online funds transfers are the most convenient ways for the customers, but it is important to note that the IFSC and the account details should be handle very carefully. Once the money is credited with the wrong bank account, it is very difficult to get back money or reverse the transaction. So we should beware of the details before we move to further procedures.
