What is IFSC? Understanding the code behind bank transfers
When you transfer money to a bank account, you need more than the recipient's account number. A branch-specific code also helps identify where the account is held. Understanding this code can make it easier to follow the details involved in a bank transfer.
Start with the code
The Indian Financial System Code, or IFSC, is an 11-digit alphanumeric code assigned to a bank branch that offers online money transfer services. It is used for transfers through services such as National Electronic Funds Transfer (NEFT), Real Time Gross Settlement (RTGS) and Immediate Payment Service (IMPS).
Read its structure
An IFSC is made up of different characters, each serving a purpose. The first four characters identify the bank, the fifth character is zero and the final six characters identify the branch. This makes the complete code specific to a particular branch.
Match the branch
Before you send the money, take a quick look at the branch details. The IFSC should belong to the branch where the recipient holds the account. If the account has moved to another branch, the code may change, even though the account number remains the same.
Find it nearby
If you are wondering what is IFSC code of your account, your chequebook can be a useful place to look. The code is printed on the cheque leaf along with branch details. You can also check your passbook, where account and branch information may be listed.
Search online
If you don't have your chequebook or passbook, you can also find the code online. The source explains that you can use the Reserve Bank of India's website to select your bank and search for the relevant branch. Banks may also provide the code through their official websites or branch locator services.
Check before sending
Before you make the transfer, look at the IFSC once more. Compare it with the branch details you have for the recipient. A wrong character can mean the code does not match the bank's records, and the money may then be returned to the sender.
Account number differs
An account number and IFSC serve different purposes. The account number identifies the customer's account, while the IFSC identifies the bank branch. A customer may retain the same account number after changing branches, while the IFSC can change with the branch.
Do not mix codes
IFSC and SWIFT codes are used for different types of transfers. IFSC is used for online fund transfers between bank accounts in India, while SWIFT is associated with international transfers. They also follow different formats, so you shouldn't use one in place of the other.
Conclusion
A bank transfer may take only a few moments to set up, but the details entered along the way still matter. Knowing what the branch code does, where to find it and when to check it can make online transfers easier to manage.