IFSC Code Full Form

IFSC Code Full Form

Edited By Team Careers360 | Updated on Jan 04, 2023 03:03 PM IST

What is the full form of IFSC Code?

The Indian Financial System Code (IFSC code) is an 11-digit alpha-numeric code that is used by the central bank to specifically identify bank branches within the National Electronic Funds Transfer (NEFT) network. Applications of electronic payment systems like real-time gross settlement (RTGS), NEFT, and the Centralized Funds Management System all employ the IFSC code. Transferring money between bank accounts requires this code, which is required. Every bank branch will have a special code, and no two branches (even of the same bank) will ever be the same. The primary distinction between NEFT and RTGS is that, in contrast to RTGS, assets are moved in batches using NEFT. This is why hourly intervals are specified, and the settlement is allocated to one of them.

This Story also Contains

What is the full form of IFSC Code?
The Significance Of The IFSC Code
Format Of IFSC Code
How Can You Find Out The IFSC Code For A Certain Branch?

IFSC Code Full Form

The Significance Of The IFSC Code

For the purpose of identifying and categorizing banks and their branches that offer RTGS, IMPS, and NEFT facilities, RBI gives the IFSC Code.
RBI can easily and accurately verify and assess financial transactions thanks to the IFSC code.
RBI can manage and handle all IFSC code-based online banking transactions, including RTGS, NEFT, and IMPS.

Format Of IFSC Code

The 11-character IFSC code is long.
The bank's name is revealed by the first four letters, and the branch number is revealed by the final seven letters.
The bank name is indicated by the IFSC code SBIN0002455 in this SBIN, while the branch number is shown by 0002455.
The IFSC Code is required to make a cash transfer using an online and digital technique, such as NEFT or RTGS, from one bank branch to another branch.

How Can You Find Out The IFSC Code For A Certain Branch?

The person must submit the following information to get any bank's IFSC code:

Username of the bank
State's name where the bank is situated
District name, branch name, or address

Frequently Asked Questions (FAQs)

1. Difference between Indian Financial System Code (IFSC) and Society of Worldwide Interbank Financial Telecommunication (SWIFT).

To transfer money from one account to another, the IFSC and SWIFT codes must be utilized. The main distinction between the two codes is that the SWIFT is used for transfers abroad, while the IFSC is utilized for transfers within India.

2. What is National Electronic Fund Transfer (NEFT)?

It is a resource transfer payment channel that encourages private resource transfers. Resources can be transferred between banks with the help of banks. Transferring allowances is always feasible, regardless of which branch you hold an account with. The person has access to internet banking, mobile banking, and custom banking as several ways to transfer allowances.

3. What is the benefit of using National Electronic Fund Transfer (NEFT)?

Since transactions must be paid within 24 hours, NEFT securely eliminates any delays in fund movements. It is not necessary to physically deposit checks or demand drafts or to go to the bank to deposit paperwork. Credit confirmations for transactions are delivered via email or text message (SMS). It is a secure, efficient, and cost-effective way to send money online because the entire procedure is paperless.

4. What fees apply to National Electronic Fund Transfer (NEFT) transactions?

Maximum of Rs 2.50 + Service Tax for transactions under Rs 10,000.
Maximum of Rs 5 + Service Tax for transactions over Rs 10,000 and under Rs 1 lakh.
Maximum of Rs 15 + Service Tax for transactions over Rs 1 lakh and under Rs 2 lakhs.
Transactions costing more than Rs 2 lakh have to pay the fees maximum of Rs 25 plus service tax.

5. Does Real Time Gross Settlement (RTGS) have a transactional limit?

There is no maximum transfer limit, and a minimum of Rs 2 lakhs can be sent via RTGS. Keep in mind that RTGS often caters to high-value, low-volume transactions. There are no fees associated with receiving funds, similar to NEFT. However, the costs for transmitting money are as follows: