The Importance of IFSC Code for Funds move Within India

The Importance of IFSC Code for Funds move Within India

In the Indian Banking system, IFSC is known as Indian Financial System Code. Itis 11 digits serial number, consisting of rare alpha-numeric character combination. The numbers can be divided as – the first 4 digits are in alphabet order, signifying the bank, the fifth number is single digit 0 (Zero), to be used by the bank in the future, and the last 6 numbers are either a combination of alphanumeric digits, or only numeric numbers, identifying the branch of the bank. The rare serial numbers are stated by the RBI to all bank branches using the Electronic Fund move systems.

save Bank of India (RBI)

The RBI being the centralized banking authority also controls the funds move between the Indian edges under RTGS and NEFT systems.The official website of RBI displays the list of all edges in Indian states and union territories that participate in this system. The edges offering net banking facilities and participating in EFT (Electronic Fund move) system must provide the bank identification characters to their customers.

Ways to find IFSC Code

Online and net banking customers must be fully knowledgeable about the beneficiary bank’s IFSC Code for sending or receiving payments within the country, using RTGS(Real Time Gross Settlement) and NEFT (National Electronic Fund move)systems. Individuals, corporate and firms, with or without an account in the bank can also move money, but such bank must be a participant in RBI regulated EFT system. The official website of the save Bank of India provides the complete list of EFT participating edges.

There are different ways to find IFSC Code of your bank. Most of the edges print these rare characters on the Cheque book leaves, but if they are not the printed on a Cheque leaf, you can call the customer care of the stated bank and get the IFSC Code. The third method that can provide you these rare numbers is to visit the financial internet sites because there are websites that provide information on bank details, Bank’s NEFT position, branch address, branch location and IFSC Code.

It is also necessary to remember that the rare identification characters of the edges are changed now and then by the RBI, and one must contact the bank branch for the confirmation of the identification numbers obtained from the third-party supplies. The wrong code may disallow your payments move.

NEFT and RTGS Systems

Both NEFT and RTGS systems for payment transfers, and to receive funds are supported by the save Bank of India. The basic differences between these two systems include:

NEFT– There is no minimum or maximum limit to funds move under this system and money reaches to beneficiary bank within 24 hours to 48 hours.

RTGS– This system is the fastest mode of payment transfers and payments can reach in no time. The transactions are operated in “real time” and “gross” basis, and not bunched with other transactions. The minimum amount for funds move is Rs. 1, 00,000 or more and the payment is credited to beneficiary’s account within 2 hours.

You must remember that whichever payments systems you are using, IFSC Code is vital for your funds move and these rare numbers are valid for only intra-bank funds transfers within India and not valid for international fund transfers. You will have to use rapid or BIC code for overseas funds move.

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