IFSC Code stands for Indian Financial System Code, it contains 11 characters. This number is given by RBI to every bank’s branch separately which are in NEFT system. This code is used by electronic fund transfers such as RTGS, NEFT and IMPS. The 11 alpha-numeric characters are printed on the cheque book for the banks supported by NEFT.
Use of IFSC Code
IFSC Code is simply a code which acts like a routing number for banks. IFSC code is necessary for user initiated fund transfer methods. It is almost impossible to transfer funds without knowing IFSC code along with other bank details.
IFSC code can help you recognize the specific regions which participate in online payments system through an alphanumeric unique code. So, you can identify the branches which can do RTGS and NEFT which can help customers in monetary settlement.
There are different values assigned in IFSC code which signifies different meanings. In the IFSC code, the first four characters denote the name of the bank while the fifth character is a ‘0(zero)’ which is kept for future use, and the last six alphabetic or numeric characters denote the specific branch of the bank.What is MICR CODE?
Difference between IFSC code and MICR?
MICR code is only applicable when the payment is to do with cheques while IFSC code facilities online transactions through NEFT and RTGS. So, it is quite apparent that the use of IFSC and MICR are for different ways of doing payments. With the advent of technology based transaction, IFSC is dominating the monetary market. Since people have gained access to internet and technology, so they are increasingly using IFSC to send money to distant places. The time required to send the money depends on bank to bank. So if you are sending money from one branch to another branch of the same bank, it will take very less time.