Full Form of IFSC – Indian Financial System Code
The full form of IFSC stands for Indian Financial System Code. It refers to an 11 digit code which is alphanumeric in nature and happens to facilitate the electronic fund transfer mechanism in India wherein each code happens to identify the banks that would participate in the RTGS and NEFT systems which are commonly used in India
Indian Financial System Code happens to be an 11 character code with the first 4 being alphabetic characters going on to represent the name of the bank, and the last 6 (which can be numeric but can also be alphabetic) going to represent the branch.
The fifth character is many times zero and would often be reserved for any future use if any. The IFSC code of banks is usually made use by the NEFT and also the RTGS systems that would enable the mechanism to channel and route the required messages to the destination branches of the banks.
Given is an example of an IFSC code of ICIC Bank, Navsari branch in Gujarat.
How to Find the IFSC Code of any branch?
Should one possess the passbook of his/her account with the bank, the concerned IFSC code can be found in the passbook which the account holder possesses. The same can be also found in the checkbook of the bank.
However should one need details of the IFSC code of any other bank, the same can be done by visiting the official website of the concerned bank or even by calling in the helpline number of the bank?
Given below is a summary of how the Indian Financial System Code of any branch or bank can be found out.
- Locate the same in the passbook which every customer or account holder would possess.
- Identify the IFSC code in the checkbook of the account holder. Every cheque leaf will have the same imprinted on it.
- This code can also be found on the official RBI website, wherein the same is mentioned in the list of banks that would participate in the NEFT network.
- Additionally, there may also be third-party websites wherein with sufficient input details like the name of a bank situated in the concerned state and district would help one extract the details of the IFSC code of the bank that one is looking for.
Is IFSC Code the Same for all Branches of the Bank?
- IFSC code will not be the same for all branches of the bank. The first initial letters may be the same referring to the name of the bank, usually the first 4 alphabetic characters. (Ex: HDFC0001756 referring to the bank in reference being HDFC)
- The account holder if holds more than 1 account with the same branch may have the same code imprinted in all passbooks or checkbooks that he possesses owing to the fact that the account is in the same branch.
How to Search Bank by IFSC Code?
- The first 4 alphabetical characters would be in reference to the name of the bank and hence once can be certain as to which bank he/she is trying to locate. Ex: The IFSC code HDFC0001756 would be in strong reference to HDFC bank as indicated by the first 4 letters of the code.
- Further with the advent of technology, there are numerous websites that would go on to indicate and help one find the concerned bank/branch that one is trying hard to find. By a simple click of a button, one can be sure to find the bank/branch he is trying to locate and identify.
Why IFSC Code is Required in Banking?
- Whenever a person intends to undertake some transfer of money to another bank account of any other member it becomes imperative that the person is aware of the code of the transfer where the account is held. It becomes an important part of the mechanism to have the money transferred. This alphanumeric code facilitates the online transfer system in India and hence it becomes imperative to know of the branch where the account is held so that the RTGS (Real Time Gross Settlement) and NEFT (National Electronic Funds Transfer) can be undertaken seamlessly and IFSC code becomes an imperative mandate in such cases.
- Further thanks to IFSC codes, one need not waste a long time standing in queues and rather can have the same transferred across the globe. Owing to the IFSC code, one can have the luxury of sitting at home and transferring money on his fingertips owing to the advent of technology.
Things to Remember
- Allotment by RBI
Many are under the misconception that the Indian Financial System Code is created by the banks themselves; however, it becomes important to know that the RBI is the only authority who has the right in generating and then allocating the ISFC code to the various branches
There would be no occurrence of such an instance where the IFSC code would be repeated between banks. It tends to be unique for each bank. NEFT and RTGS are just made based on the account number and the IFSC code
- Complete Authority by RBI
RBI happens to have all the rights over the Indian Financial System code beginning from the generation of the code to the alteration to even cancellation. It even has the autonomy and the power to cancel out the IFSC code or make any sort of amendments wherever required. The customer should be vigilant in such cases and make efforts to ask for extra checkbooks that are updated and reflect the desired change.
- General Tips
It becomes imperative that the account holder makes all effort to double-check on the IFSC codes even from other third party websites to ensure accuracy in the usage of the same. It is always suggested to transfer a small amount before proceeding with a transaction of a significant amount to ensure safety in the transactions undertaken.
This has been a guide to the Full Form of IFSC and its definition. Here we discuss format, how to find the IFSC code of different branches and also how to search the bank by it. You may refer to the following articles to learn more about finance –