What is an IFSC Code?

The Indian Financial System Code (IFSC) is an essential part of secure online banking transactions in India. This 11-character alphanumeric code uniquely identifies each bank branch, ensuring that funds are accurately routed during transactions like NEFT (National Electronic Funds Transfer), RTGS (Real-Time Gross Settlement), and IMPS (Immediate Payment Service).

How to Find Your Bank’s IFSC Code?

You can easily find the IFSC Code of your bank branch in the following places:

• Your chequebook or passbook, where the code is printed.
• Check the official Reserve Bank of India (RBI) website for the most up-to-date codes.

Why is IFSC Code Important for Online Fund Transfers?

The IFSC Code plays a crucial role in ensuring the successful processing of online money transfers in India. Without this code, you cannot initiate any Internet Banking fund transfer. It’s a must-have for seamless NEFT, RTGS, or IMPS transactions.

Changes in IFSC Codes Due to Bank Mergers

While the IFSC Code typically remains the same, there are exceptions. For example, after the State Bank of India (SBI) merged with five associate banks and Bharatiya Mahila Bank, the IFSC Codes for these branches were updated.

Find the Correct IFSC Code Instantly

Use our IFSC Code Finder tool to quickly and easily search for your bank’s IFSC Code. Just enter the bank and branch details, and you’re good to go!

Understanding the Format of a Bank's IFSC Code

The structure of an IFSC code is quite simple once you break it down. The first four characters of the code are typically letters and represent the bank’s name. For example, if you see an IFSC code that starts with “PUNB,” you know it belongs to Punjab National Bank (PNB). Similarly, codes that start with “HDFC” are for HDFC Bank.

The fifth character is always the number “0” (zero), which is reserved for future use and doesn't change across different codes.

The final six characters uniquely identify the specific branch of the bank. These can either be numbers or a combination of letters and numbers, depending on the bank’s internal system.

1	2	3	4	5	6	7	8	9	10	11
Bank Code				0	Branch Code

How Does the IFSC Code Work?

The Indian Financial System Code (IFSC) is crucial for all electronic fund transfers within India. This unique code helps direct your money accurately to the correct bank branch and account. When initiating a transfer, the IFSC code plays a vital role in avoiding errors and ensuring successful transactions. The Reserve Bank of India (RBI) uses the IFSC code to monitor and manage transactions between banks, making sure everything runs smoothly and securely.

Besides transferring funds, the IFSC code is also used to invest in mutual funds and pay for insurance via net banking.

Why Do We Need an IFSC Code?

IFSC codes can be found in your chequebook, on the front of your passbook, or in your monthly account statements. This unique code is necessary for smooth financial transactions for several reasons:

• Accuracy: It ensures that your funds reach the right bank and branch without any errors.
• Transaction Tracking: RBI tracks all financial transactions with ease using IFSC codes.
• Branch Identification: It allows you to identify the specific branch involved in any transaction.
• Mandatory for Online Transfers: IFSC codes are required for initiating NEFT, RTGS, and IMPS transfers.

How to Transfer Money Using the IFSC Code?

Transferring money online using an IFSC code is a simple and convenient process. Follow these steps to make a transfer:

• Step 1 - Register for Net Banking: Contact your bank to get net banking credentials and register your account.
• Step 2 - Add Beneficiary: Add the recipient’s details, including their full name, bank account number, and IFSC code, to your account as a beneficiary.
• Step 3 - Select Payment Mode: Choose a payment method like NEFT, RTGS, or IMPS, and confirm the details.
• Step 4 - Authenticate the Transaction: You will receive a one-time password (OTP) to verify the transaction and complete it securely.
• Step 5 - Funds Transferred: Once authenticated, the funds will be transferred to the beneficiary's account.

What is an MICR Code?

The Magnetic Ink Character Recognition (MICR) code is a series of digits found at the bottom of a cheque, introduced by RBI in the 1980s to enhance cheque processing and make it more secure. The MICR code identifies a bank branch during cheque clearing, ensuring safe and fast transactions.

Where to Find the MICR Code?

You can find the MICR code printed on the bottom of your cheque, right next to the cheque number. You can also look it up online or by contacting your bank.

Difference Between IFSC and MICR Codes

IFSC codes facilitate online fund transfers, while MICR codes are used for faster cheque processing. The IFSC code consists of 11 alphanumeric characters, whereas the MICR code is a 9-digit numeric code.

Use of MICR Code

MICR technology speeds up cheque processing. Since each bank branch has a unique MICR code, it helps quickly identify the bank branch and enables faster cheque clearance.

Online Transfer Methods Using IFSC Code

With the rise of digitization, online fund transfers have become a preferred choice. Below are three key methods of transferring money using IFSC codes:

1. National Electronic Funds Transfer (NEFT)

NEFT enables funds to be transferred between banks across India. It operates in batches with 12 settlements between 8 AM and 7 PM on weekdays, and 6 settlements on Saturdays. There’s generally no limit to the amount you can transfer via NEFT, but banks like SBI may impose a limit of ₹10 lakhs. Fees range from ₹2.5 to ₹25, based on the amount. NEFT services are not available on weekends or bank holidays.

2. Real-Time Gross Settlement (RTGS)

RTGS is used for high-value transactions where funds are transferred instantly in real time. This method is available only during banking hours, and the minimum transfer amount is usually set at ₹2 lakhs.

3. Immediate Payment Service (IMPS)

IMPS is an instant interbank transfer service that operates 24/7, including weekends and holidays. It’s perfect for small-value transactions that need to be processed quickly.