What Is IFSC Code? IFSC code in full form is the Indian Financial System Code. It is the 11 digits alphanumeric code. The code is useful for identifying the branches to do the NEFT (National Electric Fund Transfer). For more information on the same follow obreakingnews.com
What Is IFSC Code and its purpose:-
Additionally, the purpose of the code is for various payments such as RTGS (Real Time Gross Settlement), NEFT (National Electric Fund Transfer), and CFMS (Central Fund Management System). IFSC code is mandatory so that you can make the payment from one bank to another bank branch.
It is important to know that every branch has a unique IFSC code for payment purposes. Meanwhile, it is essential to understand that not the two branches can have the same IFSC codes.
What Is IFSC Code Representation:-
The IFSC code represents the bank and its branch through the 11-digit number. The four alphabets in the IFSC code are the bank’s name, and the last digits represent the information of the bank branch.
The fifth digit in the IFSC code of every bank represents 0. You can understand the IFSC code representation with the help of an example. Let us make you understand by using a simple example. The IFSC code for a particular bank is PYTM0123456. Therefore, the first four alphabets represent the bank’s name, i.e., Paytm Payments Bank.
Moreover, you can see the fifth digit in the IFSC code represents 0. On the other hand, there is another example for you so that things can become much clear.
You consider the IFSC code of the SBI branch. In that case, the first four digits are SBIN. It shows the name of the bank branch. Meanwhile, the fifth digit in the IFSC code is 0. The last six digits show the information associated with the code of the branch.
How can you use the IFSC code for the money transfer?
Keep the IFSC code with you
If you want to transfer your money from one account to another, you must keep the IFSC code with you. It is essential to keep the IFSC with other important information such as the person’s bank name and bank account details.
You should have all these details with the IFSC code
You should perfectly have all these details with the IFSC code and the person’s name to which you have to make the payment. It is not the case when you need to pay the money through UPI mode. You don’t require to have the IFSC code with you. You can make and receive the payment by scanning QR, the person’s phone number, and the UPI Id. It can facilitate a convenient money transfer for the person. On the other hand, you transfer money through other modes such as NEFT and RTGS.
IFSC code must be correct
You have to keep the correct IFSC code for that bank branch to make the payment. Moreover, you need to provide some other information, including the person’s name, bank account number, bank name, and IFSC code.
Check all this information carefully to facilitate the payment system properly. The transactions cannot occur without the IFSC code from one branch to another branch. The IFSC code can identify the receiver branch and then make the payment to the person who has an account in that branch.
Final Words on Importance of IFSC Code
The central banks use the 11-digit IFSC code to identify the bank and the branch in the NEFT network. The first four digits of the IFSC code represent the bank branch, and the last six digits represent the bank branch.
On the other hand, the IFSC code fifth is the 0 in every bank branch IFSC code. IFSC code is beneficial for facilitating transactions in RTGS, NEFT, and CFMS money transfer mode. You want to make the payment to a person who has the account in the other bank branch.
Keep the record of all this information correctly to make the RTGS, CFMS, and NEFT payments to the other bank branches. Collect the information of the bank account, bank name, person name, and IFSC code.
You can do it with the help of the IFSC code only. Meanwhile, the UPI system provides you the facility that you don’t need the IFSC to make the payment online. You can follow the UPI system is a convenient payment mode for you anytime with the tap of your smartphone.