What is an IFSC Code?
IFSC (Indian Financial System Code), is a unique 11-digit alphanumeric code used by banks for online fund transfers via NEFT, RTGS and IMPS. The IFSC code is printed on the cheque leaf provided by the bank. The Reserve Bank of India allotted the IFSC codes to all the banks in India. The customers can also find the IFSC code on the official websites of banks.
RBI made IFSC code mandatory for using net banking to transfer funds from one bank to another bank. There will be no change in IFSC code, unless any bank merges with another bank. Establishment of new banks will get a new IFSC code from the Reserve Bank of India.
Features of IFSC Code
- It helps to identify a particular bank branch.
- It eliminates errors in the money transfer process.
- This code is used for all electronic payments like NEFT, RTGS and IMPS.
Different IFSC Code for Bank branches and Credit Card
All bank branches have an unique IFSC code, but the credit card IFSC Code of a particular bank remains the same throughout India.
Few banks credit card IFSC code are given below:
What is MICR Code
- MICR stands for Magnetic Ink Character Recognition is a 9-digit code that helps to identify a particular bank branch that takes part in Electronic Clearing System (ECS) which is used to clear cheques on a routine basis. MICR code is found on the cheque leaf issued by the bank and it is also printed on the passbook issued to the customer.
- The MICR code is very useful to clear cheques that are deposited in machines. As well as, this code also helps to avoid errors.
- From the nine digits, the first three digits of the codes indicate the cities, the next three digits identify the particular bank code and the last three digits mentions the bank branch code.
- For example the MICR code for the Bank of India branch in Chennai is ‘600013021'. The first 3 digits ‘600’ is used to identify the city, the next three digits ‘013’ represent the specific bank code and the last 3 digits ‘021’ specify the bank branch code.
- The MICR code is used to process and clear cheques with the help of machines. The 9-digit code helps in eliminating errors in the clearing process and it also helps to speed up the process. It also makes cheque processing safer and securer.
IFSC Code Format of all bank branch:
| A | B | C | D | 0 | 1 | 2 | 3 | 4 | 5 | 6 |
|---|---|---|---|---|---|---|---|---|---|---|
| First four digits (in alphabets in capital letters) of IFSC code Bank Name | The fifth digit is 0 (Zero) | The last six digits (mostly in numeric, but few banks like Bank of Baroda, YES Bank are using alphabets capital letters) of IFSC code indicates Bank Branch Name. | ||||||||
Search for Bank Branch IFSC Code
- IFSC codes are used for any online fund transfer from one bank to another bank within India and all the transactions processed through this code are valid by RBI.
- The complete knowledge about IFSC codes makes the online money transfer more easy and quick. Receiving and sending is done in a proper manner and it is easy to trace the transactions.
- The customers can easily find the IFSC code of a specific bank branch located anywhere in India with the help of online resources which are available on the internet in simple format.
- The complete details given in the websites are almost accurate and verified. If any customers doubts the details provided on the internet can contact and check with the bank branch directly by calling through phone or by sending emails.
The procedures to be followed to find the IFSC code on the internet are given below
- First you have to type IFSC code in the search panel and click the search button.
- You can see the IFSC codes directory which will help you to locate the required IFSC code. In the first column, you have to choose the bank name, in the second column you have to choose the state, in the third column you have to choose the district and finally in the fourth column you have to choose the bank branch.
- By selecting the correct bank name, the state, district and bank branch, the customers can get accurate IFSC code of a particular bank branch for online money transactions.
- You can see the bank branch details displayed on the computer. You can get IFSC code, bank branch address, contact phone number and email within a few seconds.
How the IFSC Code Works?
For example, the Indian Overseas Bank IFSC code is IOBA0002738. Let us see how IFSC code works in banking transactions.
- Here, the first four digits is IOBA indicates the name of the bank, which is Indian Overseas Bank
- The 5th digit, which is 0, it is given for future use
- The other 6 digits, which is 002738, helps the RBI to identify a particular bank branch without any mistakes.
When a customer initiates for fund transfer to a particular account holder, he must give the account number and branch-specific IFSC code to the banker. When the customer provides all these details, the fund is transferred to the account holder and correct IFSC avoids any errors in that particular transaction. IFSC code is also used to buy insurance and mutual funds through net banking.
The IFSC code is mentioned on the cheque book or bank passbook. The customers can also find IFSC code mentioned in the monthly account statement.
Importance of Indian Financial System Code
- IFSC code helps the Reserve Bank of India to overall view of all banking transactions going on in our country without any mistakes.
- With the help of this code the RBI can check, trace, overview and easily maintain all the financial transactions carried out through NEFT, RTGS and IMPS.
- The IFSC code is very important for the bank customers because it is used in most electronic money transfers.
- The bankers will request the customers to provide the IFSC code details of the receivers and payees along with the bank account numbers for easy and quick transactions.
- If the customer fails to provide the code, the banker takes some more time to collect all details of both accounts for fund transfer.
IFSC and MICR Code printed on the Bank Cheque leaf
- According to RBI guidelines, it is mandatory to print both IFSC and MICR code on the cheque leaf.
- The 11 digits alphanumeric IFSC code is printed on the cheque leaf. All bank branches have different IFSC codes. The IFSC Code is located on the top of the cheque leaf mentioned below the bank branch address field.
- It is clearly mentioned in 11 digits (which is alphanumeric) IFSC code is printed in a small column (sometimes the outline of the column is in red colour).
- The 9 digits numeric MICR code is printed in a unique typewritten font and ink at the bottom of the cheque leaf in the middle next to cheque leaf number. Only the Magnetic Character Ink Reader can read this unique font easily and clearly.
How to find Cheque Number?
The cheque number is printed in a typewritten font at the bottom of the cheque leaf in a different font style. The cheque number is useful to trace the cheque for administrative purposes in case any mistake in transaction.
Use of IFSC Code for online fund transfer
The IFSC code is used for three online transfer modes namely, NEFT, RTGS and IMPS. IFSC code helps the customers to transfer funds quicker and safer from one account to another in a simple way. This code avoids mistakes in online fund transfer because transferring of funds is done only by providing correct details such as IFSC code and account number of payee's bank branch.
NEFT denotes National Electronic Fund Transfer. This is the most popular money transfer system in India. Funds are transferred from one bank branch account to another faster by providing accurate details such as IFSC code, beneficiary name, account number, account type and the amount. The settlement of NEFT process in a batch-wise format.
RTGS denotes Real Time Grow Settlement. Transferring funds from one bank branch to another through RTGS has become popular because the transaction is done immediately within few minutes. Customers prefer RTGS fund transfer for high-value transactions which is cleared immediately. Funds are transferred from one bank branch account to another faster by providing accurate details such as IFSC code, beneficiary name, account number, account type and the amount.
IMPS denotes Immediate Payment Service came into use on November 2010. It is most popular and alternative new option in India for online funds transfer. Money can be transferred quickly and across all popular among all banks in India via the service available on the subscriber's mobile phone, ATM or through the internet by providing the IFSC code. Funds transferred quickly, economical and without any restriction in maximum amount.
What is UPI?
UPI denotes Unified Payments Interface. It is a new payment scheme introduced by Reserve Bank of India (RBI). It is also referred as next-generation payment method which is growing fast with the support of smart phone technology and the number of users are increasing every year in our country. Payments through online and offline is possible in UPI payment method. Transferring funds through Net banking, card swiping, using phone number of the payer and payee and scanning QR codes are practiced at present.
Frequently Asked Questions about IFSC and MICR codes
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What is the abbreviation of IFSC?The abbreviation of IFSC is Indian Financial System Code.
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What is the use of IFSC?Indian Financial System Code (IFSC) is a 11-digit alphanumeric code that is a unique code to all banks in India allotted by Reserve Bank of India for transferring online funds or money transactions from one bank branch to another.
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How to find the IFSC code of a bank name?The first four alphabet digits of IFSC code (Out of 11-digits) indicates the bank name. For example, we can take ICICI Bank IFSC code is “ICIC000278”. Here, the first four alphabets, ICIC, indicate the bank name, i.e., ICICI Bank. The fifth digit is 0 (zero) - provided for future use. The last six digits 002778 denotes a particular branch of ICICI Bank in Chennai City and branch name is Villivakkam branch. This IFSC code can be used for online money transactions via NEFT, RTGS and IMPS to any ICICI Bank account or to other bank accounts.
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What is the full form of MICR Code?The full form of MICR Code is Magnetic Ink Character Recognition a special ink printed on the bottom of all cheque leaves is sensitive to magnetic fields.
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What is the use of MICR code?MICR code is printed with a special ink on the bottom of the cheque leaf which helps in verifying the originality of the cheque. It helps the banks to process cheques quicker without doubting it.
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Can I transfer funds / money from one bank account to another through online?Yes, you can transfer fund / money one bank account to another through online transaction like National Electronic Fund Transfer (NEFT), Real-time Gross Settlement (RTGS), Immediate Payment Service (IMPS) and Unified Payment Interface (UPI) with the help of IFSC code provided to each bank branch.
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Is the IFSC code and SWIFT code the same?No, the IFSC code and SWIFT codes are different. IFSC code is used for transferring funds from one bank branch to another within India. While SWIFT code is used for transferring funds from one bank branch to another that are operating in different countries. SWIFT code is used to identify the bank at international level and IFSC is used to identify a specific bank branch in India.
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Will any bank branch shift to a new location or change in its address will affect the IFSC code?No, it won’t affect the IFSC code. There will not be any change in IFSC code, even the bank branch shifts to new locations often. If the account holder shifts from their home branch to another which is nearer to their house then the account holder’s bank account number changes and automatically there will change in IFSC code. So, they must be careful while shifting from home branch to another because it will surely affect all their payments through cheques, EMIs and other regular payments and receipts like phone bill, electricity bill, rent, interest for fixed deposits and other transactions.
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Is the IFSC code the same for all bank branches of a particular bank?No, IFSC code is not the same to all bank branches of a particular bank. Each and every bank branch has a unique IFSC code which is allotted by RBI.
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Where do we find IFSC code in cheque leaf?Generally, we find the IFSC code printed on the top of every cheque leaf at the bottom of the address. It is clearly mentioned as IFSC code.
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Is IFSC code essential for online fund transactions like NEFT, RTGS, ECS and IMPS?Yes, IFSC code is essential or must for online fund transactions. In case, the senders don’t know the IFSC code of the receiver then the sender has to provide details regarding the account holder (receiver), the banker will help to find the IFSC code of that particular bank branch.
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Where can I find the MICR code on the cheque leaf?MICR code (9-digit numeric code is printed on the bottom of every cheque leaf provided by the banks. It is printed in the middle next to cheque number.
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Is IFSC code unique to bank branches?Yes, the IFSC code is unique to bank branches.
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Is it possible to determine the IFSC code of a bank branch from the savings bank account number?No, it is not possible to determine the IFSC code of a bank branch from the savings bank account number. The 11 digits of IFSC code is alphanumeric but the savings account number is in 9 or 11 or 15 digits which is numeric.
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If I have provided a wrong IFSC code while initiating a NEFT funds transfer. Tell me what will happen to my fund?You need not to worry because you can’t transfer funds with wrong IFSC code. The account holder name and account number must match with the details provided by the sender. In case, the transaction was taken with wrong information. You can get the fund back by giving a request to the banker along with the details of the transaction. It will be refunded within a couple of hours. You can get help and guidelines from the nearest bank branch.
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Can I make use of the IFSC code provided in my bank passbook?Yes, you can make use of the IFSC code provided in your bank passbook. The Reserve Bank of India instructed the banks to print the IFSC and MICR codes on the front page of the bank passbook, account statements and cheque book issued by the banker.