Is IFS code and IFSC code same?

IFS code is known as Indian Financial System code which an alpha-numeric identification code is uniquely allotted by our RBI to the bank’s branch. IFSC code and IFS code is same, they are just written with a difference. Every bank informs you the IFS code of the bank branch by writing it on the passbook and cheque book. Your IFSC code will be unique and different from the IFS code of any other bank’s branch. It is very simple to know your IFS code, in case you do not have your passbook or chequebook handy. You have to visit the RBI’s official website or search for the code by entering the bank and its branch’s name at Google.

The 11 digit alpha-numeric IFS code has first 4 characters as alphabets and last 6 characters as numeric. Our Reserve Bank of India, (RBI) maintains a list of all the IFS codes of the banks and their branches on its online website. RBI is the only authorized body to allot IFS codes to the banks and their branches. All the banks have been strictly asked by RBI to mention their IFS codes on the passbooks and cheque books issued by them. The first page of every passbook will have IFS code mentioned on it and on a cheque book every page has the IFS code mentioned on it. 

Uses of knowing IFS code:

The IFS code helps you to make easy payments and transfers to the bank accounts of your beneficiary. To make any payment through App/ Wallet/ Cheque/ RTGS/ NEFT/ UPI/ IMPS etc you will need to enter the IFS code. Also, to make any transfer through SMS using the MMID code you will have to enter the IFSC code of the beneficiary’s account. The IFS code facilitates direct transfer from your account to the beneficiary’s account. 

How can you search for your IFSC code?

Below are three different ways to know your IFS code:

Search IFSC code online:

To know your IFS code you can just enter the bank’s name along with the branch’s name at the search bar of your Google. Google will show you a list of all the website links that have the information about the codes. Click on any of the links and it will redirect you to the page that has the relevant information. 

Reserve Bank of India’s official website:

You can know the IFS code of your bank from the official RBI’s website. This website has all the relevant information about current policies and any amendments in the policies. Reserve Bank of India has the sole authority to allot IFS codes to the bank branches. Visit the website to know about IFS codes and current policies about banks. 

Passbooks/ Cheque books:

Every bank provides cheque books and passbooks on opening a regular or specialized savings account with the bank. The passbook and the cheque books have the Indian Financial System Code mentioned on the first page and every page respectively. 

Why are IFSC codes unique?

Every IFS code is unique for the bank branches. These codes cannot be duplicated with any other IFS codes. Like, for every individual PAN card number is unique to identify them uniquely, similarly, IFS codes are different for every bank branch. 

How to avoid making errors while entering the IFS codes before making transactions?

Follow the below steps to avoid errors:

1. Always verify the IFS codes from reliable websites such as Paisabazaar.com, bank’s official website, RBI’s website.
2. Before proceeding to make transactions, cross check the IFS code and account number.
3. To avoid a bigger loss because of incorrect details, make a small transaction of RS 10 and wait for the transaction message.

How to find the IFSC code of SBI?

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.

What is an IFSC Code and What is it Used for?

With the demonetization & then fresh currency issuance in India during the last couple of months, there has been a major boost to the cashless transactions in our country. At times, people are forced to move towards the paperless banking even against their wish. Thus, 8th November 2016 has marked an important day in the Econnomic History of India for a major step towards digitalization of financial transactions, be it the banking way, the ewallet way or any other innovative methods of transaction!

Online payments in India can be done through Netbanking, NEFT, RTGS, IMPS, Credit and Debit Card, Electronic Clearing Methods, mobile banking, -wallets introduced by banks, NBFCs as well as mobile service providers in India.

All these modes of payment need to be linked to the home branch savings bank account of the individual with reference to its IFSC code.

What is IFSC Code ?

IFSC Code is the short cut of Indian Financial System Code. It consists of 11 characters in an alphanumeric combination. IFSC of any branch of any bank in India is unique and the identity of the bank can be found through only its IFSC. No other information about the bank, branch, address, etc. is needed for online money transfer once the IFSC code is correctly entered. This information regarding IFSC is often not available when you apply for a savings account, but becomes very important when you already have access to a savings account.

The Reserve Bank of India or the RBI is the Central Banking Institution, which controls the monetary operations in India. Thus, RBI issues the IFSC code to each bank and its branch in India.

How does an IFSC Code look like?

The IFSC code is a 11 character code which is alphanumeric. It typically looks ABCD0123456 where in:

1. First 4 characters of the code represent Bank Code,
2. Fifth characters is Zero which is reserved for future utility
3. Next 6 characters represents Branch code, making the entire IFSC a 11 character code.

For example, a typical IFSC code for SBI would be say: SBIN0018382.

Wherein the first 4 digits are SBIN represent State Bank of India, 5th character is zero and the last 6 characters, i.e. 018382 would help you identify that this code is of SBI, Bangalore, its address, contact details, branch timings, etc. The data is readily available online and can easily be searched.

Why do banks give so much of importance to IFSC?

In today’s virtual world with the press of a button , everything can be transacted online. Whether it is shopping,movie booking ,events booking, purchase of groceries ,etc., when we have so many virtual transactions, the use of IFSC code for transfer is of paramount importance. IFSC is used in NEFT and RTGS.

NEFT is the online mode of payment used by an individual or any organization to make an electronic transfer to another account. Amount transferred thru NEFT is transferred in batches to the recipients by the banks.

RTGS or Real Time Gross Settlement is the electronic gateway, which enables account to account transfer in real time. So this can transfer money from one account to another immediately, while NEFT is settled in batches.

How is the IFSC Code helpful?

When we want to transfer money from one bank to another bank through RTGS, NEFT or IMPS , these being transfers within the banking system, the IFSC acts as a unique identifier. The common link to the transfer of funds is IFSC code.

There are has been a significant transformation in the economy since introduction of the online route and because of this, massive financial transactions have occurred across the banking system. The traffic of funds transfer can be handled /eased only through IFSC code which is already prevalent in our banking system.

Points to note about the IFSC Code.

1. IFSC code can be found in a cheque leaf, along with the other details of the account holder. If they want to check the their own branch IFSC code.
2. Other Banks IFSC code can be found on RBI official weblink.
3. Entire IFSC codes of the branches can be located across the country in the particular bank weblink.
4. Easy and quick transfer of funds by using IFSC code.
5. No scope for error, as the funds will be deposited to the particular bank and account.
6. RBI has advised all the banking firms which are under its umbrella to issue to IFSC code. IFSC code is rolled into the system to identify the route , monitor and track every transaction.

It is also better to know the interdependent terms which are commonly used along with IFSC.

IFSC & MICR- Many a time people get confused with these common terms which are used for transferring the funds. MICR-Magnetic Ink Character Recognition. MICR is a 9 digit number representing city, bank & branch. The code which is introduced by RBI acts as a safety of the negotiable instrument i.e. the cheque. Whereas , the IFSC code helps in directly transferring the amount to the beneficiary account. The IFSC code helps in the instant transfer of money.

IFSC & SWIFT Code- With the Globalization and the boost to the import and export trade & more people are settling abroad, we need to understand the SWIFT code. SWIFT - Society for Worldwide Interbank Financial Telecommunication, it is a 11 character code , first 4 characters are bank code and next 4 are alpha country code,next 5 codes are optional with location and branch code. When we want to transfer the money abroad SWIFT code is helpful.

The main difference is IFSC code helps in the funds transfer within India i.e. domestically, whereas the SWIFT code helps in money transfer abroad. Indian economy is the sixth largest economy in the world measured by GDP, this coincided with major changes in the world economy . All these IFSC, SWIFT codes and various modes of bank transfer, which are introduced by the RBI,helps the citizens to get hassle free, quick and secure access to funds in their savings account within India.