The internet has changed the way we do things from shopping to education and even banking. Nowadays, it is possible to electronically conduct bank transactions which save you the hassle of going to the bank. This has also made the bank employees more efficient and made them free to attend to core tasks.
However, the system of electronic banking is a complicated one and the Reserve bank of India has come up with the concept of IFSC codes or Indian financial system code which identifies every bank branch in a unique manner. This is an eleven character code assigned by the RBI to each bank branch that is participating in NEFT system in the country. This code is used by the different electronic payment system applications like RTGS, NEFT and CFMS.
What is the IFSC code?
The IFSC code consists of 11 characters out of which the first 4 are alphabets representing the name of the bank. The fifth character is standard and is zero which is meant for future use. The last six digits are numbers which identify the branch of the bank.
Reserve Bank of India
The Reserve Bank of India is popularly known as RBI and is a central banking institution which controls all banks. All the money transactions among banks using RTGS and NEFT are controlled by the RBI. RBI was established on April 1, 1935 and nationalized in 1949 it is fully owned by the Government of India.
RTGS – Real Time Gross Settlement
This is a fund transfer system which is used for the transfer of money from one bank to another. This is a gross basis transfer and is in real time. This system is used for transacting large amounts of money in which the minimum amount is Rs. 200,000 while there is no maximum limit for this transaction.
Benefits of RTGS
All transactions are processed and settled in real time. There are no credit and liquidity risks in the RTGS payment system. The beneficiary bank can receive payment instantly whenever the central bank system accepts the request. This system ensures quick and secure payments in market transactions and major business solutions without being exposed to the risk of settlement
NEFT – National electronic fund transfer
In this system of payment the payment is transferred from remitting account to the account of the beneficiary.
Benefits of NEFT
The method of NEFT fund transfer reduces paper work drastically which makes it very eco friendly. With this method you can perform seamless transfer of funds from one account to another. There are no chances of mistakes and the entire operation is fast and highly secure. The service charge for NEFT transfer is much less compared to using pay order or demand draft. There are no risks of credit and liquidity in this system of payment.
How to find IFSC code of SBI?
SBI or State Bank of India is the largest public sector bank in the country and is popular among Indians. If you have an account in any SBI branch then you simply have to look at the check leaves in order to know the bank branch IFSC code. On the other hand if you do not have an account in this bank, then you can visit the official website of Reserve Bank of India and get a list of all the SBI branches codes. At the same time, there are many websites which provide the information regarding the IFSC codes when you submit the information regarding the name of the bank, state, district and branch. In fact apart from IFSC code you can also find information like MICR code, Address and Contact number of the bank branch.
EmoticonEmoticon