What is IFSC Code?

The Indian Financial System Code (IFSC), is a unique 11-digit alphanumeric code that is used for online fund transfer transactions done via NEFT, RTGS, and IMPS. You can find the IFSC code on the cheque leaf that is provided by the bank. The Reserve Bank of India (RBI) assigns the IFSC codes to the bank. Apart from the cheque leaf, you can also find the IFSC code on the official website of the bank and the RBI.

In case you are using net banking to transfer money, it is mandatory for the IFSC to be entered to initiate the transfer. Unless there is a merger, banks do not modify or change the IFSC code.

IFSC Code: Some Key Features

Helps uniquely identify a specific bank branch
Helps eliminate errors in the fund transfer process
Used for all electronic payment options such as NEFT, RTGS, and IMPS

Difference Between Bank IFSC Code and Credit Card IFSC Code

In the case of the bank IFSC code, it varies from branch to branch. However, the credit card IFSC code for a particular bank will remain the same across the country.

Bank IFSC Code Format:

A	B	C	D	0	1	2	3	4	5	6
Code for Bank Name				0	Code for Branch Name

IFSC Code: How Does it Work

Let us take an example of the Canara Bank IFSC code to better understand what the IFSC code is and how it works in banking transactions. The IFSC code for the Chandigarh Branch of Canara Bank is CNRB00001995.

Here, CNBR represents the name of the bank, which is Canara Bank
The 5th character, which is 0, is for future use
The other 6 characters, 01995, specifically helps the RBI identify a bank branch without any error.

Now, let us understand how IFSC works. When a fund transfer is initiated to a particular payee, one has to provide the account number and branch-specific IFSC code. Once the remitter provides these details, the money is sent to the account holder and IFSC helps avoid any errors in such transactions.

Apart from fund transfers, the IFSC code can also be used to purchase insurance and mutual funds through net banking. The Reserve Bank of India’s (RBI) National Clearing Cell monitors all transactions and the IFSC code helps the RBI keep track of transactions and also execute fund transfers without any error.

The IFSC code can also be found on your checkbook or bank passbook. One can also find their bank branch IFSC code in the monthly account statement. The IFSC code for each bank and branch is unique.

The necessity of the Indian Financial System Code

We need an IFSC code because it helps the RBI monitor all banking transactions without any blunders. A simple IFSC code can aid the RBI track, oversee, and seamlessly maintain all financial transactions that are carried out via NEFT, RTGS and IMPS.

For bank customers, the IFSC code is important because most electronic fund transfers cannot be initiated unless the IFSC code of the beneficiary/payee is provided along with the bank account number.

IFSC code plays an important role when money is transferred from one account to another through methods such as IMPS, NEFT, and RTGS. All these options are fundamentally concerned with inter-bank money transfer but perform this task in different ways. The common thread amongst these varied options is the bank IFSC codes system.

Frequently Asked Questions on IFSC

What is the full form of IFSC?
Ans: The full form of IFSC is the Indian Financial System Code.
Why is IFSC used?
Ans: IFSC or Indian Financial System Code is an 11-digit alphanumeric code that is used to uniquely all bank branches within the National Electronic Funds Transfer (NEFT) network by the Reserve Bank of India.
How to search for bank names by IFSC code?
Ans: It is very easy to find the bank name using the IFSC code. The first four characters of the IFSC code represent the bank name. So, if the bank name is ICICI, then the IFSC code will look something like ICIC0001420.
Are IFSC and SWIFT codes the same?
Ans: No, the IFSC and SWIFT codes are not the same. IFSC is used for transferring funds within India, while SWIFT code is used for transferring funds at an international level. Moreover, SWIFT is a bank identifier code while IFSC is used to identify a specific bank branch.
If a bank branch is changed, will the IFSC code change?
Ans: No, if the location of a bank’s branch is changed, then the IFSC code will not change. If the bank account is shifted from one branch of the bank to another, only then will the IFSC code be changed.
Is the IFSC code the same as the branch code?
Ans: No, the IFSC code is not the same as the branch code.
Where is the IFSC code located on the cheque leaf?
Ans: IFSC code is generally present on the top part of every cheque leaf or near the bank branch address.
Is the IFSC code required for IMPS?
Ans: IFSC code is required for IMPS only if the individual is transferring money using a bank account number. If the receiver’s MMID is not available, then he/she needs to add the receiver as a payee, for which details such as bank account number, name, and IFSC are required.
Is IFSC code unique?
Ans: Yes, IFSC code is a unique alphanumeric code.
Is it possible to determine the IFSC code of a bank’s branch from the savings bank account number hosted in the same bank?
Ans: No, it is not possible as the 15-digit long savings bank account number does not include the bank’s IFSC code.
I think I have provided the wrong IFSC code when initiating an NEFT funds transfer. What will happen to my money?
Ans: There is no need to panic as for an NEFT transaction to go through and benefit the intended recipient, you are required to provide the latter’s account number and the corresponding bank’s IFSC code. In case you provide the wrong IFSC code, the system with a tally against the recipient's name and account number to identify the mistake and refund the money. The refund will be highlighted in your account within a couple of hours at the maximum.
Can I access the IFSC code from my bank passbook?
Ans: Yes, you can access the IFSC code from the bank passbook. As per a directive from the Reserve Bank of India, banks must print the IFSC and MICR codes prominently on the passbooks, account statements, and cheques issued by them.