- Go through the full form of IFSC in banking and money transfer.
- Understand what the alphanumeric code denotes in IFSC.
- Check the uses and importance of an IFS code.
Whenever you want to transfer money to another bank account through IMPS, NEFT, or RTGS, you will always need an IFS code of the respective bank. You can either find the IFSC on the cheque or the first page of the passbook of the account holder. So, you know the purpose of having an IFSC but do you know the IFSC Full Form? The full form of IFSC is the Indian Financial System Code and this code varies from bank to bank. It is an 11 digits alphanumeric code that gives an identity to the bank when another person is transferring money to that bank. Therefore, let’s take a look at all the details of an IFS code and understand what each character in the code indicates.
Explanation of IFSC in Banking
We have told you that an IFS code has 11 characters but these characters are divided into two parts. Both of them indicates different meanings. The first four alphabetic characters denote the name of the bank and the remaining numeric characters denote the branch of that bank.
If we take an example of the SBI Saket Branch Delhi then the IFSC of this branch is SBIN0005442. So the first four characters that are SBIN denote the name of the bank and it is the State Bank of India. On the other hand, the remaining numeric characters 0005442 denote the branch that is in Saket.
An IFS code cannot be the same of two different branches. They are unique identification numbers allotted to different branches of different banks. Therefore, it is necessary to know the explanation of IFSC with the IFSC Full Form.
Need for IFSC
You will need an IFS code to differentiate between two branches of the same bank. If you want to transfer money to the SBI account then you should know the accountholder’s savings account branch.
Therefore, let’s take a look at all the details of an IFS code and understand what each character means.
Uses of IFSC
- The Indian Financial System Code is needed at the time of making IMPS.
- You will also have to provide the IFSC while transferring money through NEFT.
- At the time of RTGS, it is necessary to write the IFSC of the respective branch where the money has to be transferred.
- You will always need an IFSC at the time of adding the beneficiary in your banking mobile app and then only you can transfer money to the beneficiary’s account.
- The IFSC adds security to online transactions and reduces frauds.
- You will not have to search for the bank’s branch and waste your time because IFS code will do that part.
Where Will You Find IFSC?
There are various ways through which you can find the IFSC of a bank account:-
- You can find an IFS code on the account holder’s passbook on the first page.
- You Can find the IFSC at the top of a cheque.
- The official websites of banks also have an IFSC.
- There are also some other websites other than the banking website where you can search for an IFS code.
- You will also find the IFS code on the RBI’s website and IFSC’s official website.
Now you know the IFSC Full Form that is the Indian Financial System Code. It can’t be the same of two different bank branches. On the other hand, you should know the need and uses of the IFS code with the full form of IFSC. The IFSC helps you to make fast and easy payments to other bank accounts through IMPS, RTGS, and NEFT.