We are living in a digital era. Everyone must be holding a regular savings account with any of the banks in India. You must be aware of all the banking services that are generally conducted via internet banking? Alright. Therefore, you might have heard about the IFSC (Indian Financial System Code) before.
Indian Financial System Code (IFSC) is an 11-digit alphanumeric code that is often gets used to identify bank branches and their location. The bank generally uses this code for completing NEFT (National Electronic Fund Transfer). For instance, there is a unique IFSC code for every bank and its branch. It helps in the identification of particular banks and their branches.
Let me come to the point. You must have come across this article looking for the IFSC Full Form and How does it work? Fortunately, you have landed in the right place. Let’s have a look at further details.
IFSC Full Form
IFSC Stands for Indian Financial System Code. We have mentioned earlier in this article about the uses of an IFSC Code. For instance, it is an 11-digit alphanumeric code that is often allocated specifically to each bank and its branches.
This code is often needed to complete fund transfers via a bank or internet banking platform. For instance, if one wants to transfer the funds to any other bank account using the IMPS/NEFT as the payment option, then one needs to know the correct IFSC code for completing the fund transfer.
Without knowing the correct IFSC code, the transfer might get failed, or the money will get deposited in the incorrect bank account.
For a bank to be able to get the IFSC Code? They just need the following requirements.
- Bank Name.
- Bank Location. (State, District)
- A Complete Bank address.
What is the Indian Financial System Code?
We have mentioned earlier about the IFSC Code. It stands for Indian Financial System Code and often gets used by the bank. The customer and the bank often need the IFSC code to complete fund transfers.
Every bank and its branches will get a unique code, and no two branches even from the same bank will ever get the same code. In IFSC (Indian Financial System Code), the first four digits of the alphanumeric code will represent the bank, and the last six digits will represent the branch. The fifth digit will always be zero.
For example, the Kotak Mahindra Bank (KMB) 11-digits alphanumeric IFSC code will represent the ‘KKBK.’ in the first four letters. The last six digits will represent the branch location. Let’s have a look at the example, Kotak Mahindra Bank located at Gill Road, Ludhiana, Punjab, 141003 will be having the IFSC Code – KKBK0003902.
How to Find the IFSC Code? (All The Banks)
There is nothing difficult in it. Your bank will provide you the IFSC code during the opening of the bank account. It is generally mentioned in the welcome kit, passbook, and Cheque Book.
You can quickly locate it with the documents. However, one can even find the IFSC code online. Let’s have a look at the process.
- First, one has to visit Google.
- You now have to search for IFSC Code. For example, one can type SBI Mumbai Branch IFSC Code.
- The same will appear in the search results.
- You only have to select the correct bank name and the branch for getting the correct IFSC code. (You can cross-check with the bank customer service before using the same)
To be precise, one generally needs the following things to get the IFSC code online.
- Bank Name.
- Bank Location. (State, District)
- A Complete Bank address.
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Importance of Indian Financial System Code (IFSC)
- The Reserve Bank of India (RBI) provides the Indian Financial Code (IFSC) for the classification and identification of banks and their branches that provide NEFT (National Electronic Fund Transfer and RTGS (Real-time gross settlement) facilities.
- Indian Financial System Code (IFSC) helps RBI (Reserve Bank of India) to verify and evaluate financial transactions without any disruption and errors.
- The Reserve Bank of India can handle all online transactions gets done using the IFSC code. For example, online fund transfer using the NEFT, IMPS, and RTGS facility.
IFSC Code Format
- The Indian Financial System Code (IFSC) has 11 alphanumeric characters. For instance, the first four digits of the IFSC code represent the bank, and the last six digits represent the branch. The fifth digit is always zero.
- The IFSC Code SBIN0000748 in this SBIN describes the bank name, and the branch number is denoted by 0000748.
- The Indian Financial System Code (IFSC) is often used and needed for completing fund transfers using the IMPS, NEFT, and RTGS facilities.
Frequently Asked Questions
Some questions about IFSC Full Form were asked to us repeatedly. Therefore, we have decided to answer all the related questions here.
What is the Full Form of IFSC?
IFSC Full Form – IFSC Stands for Indian Financial System Code. It is an 11-digit alphanumeric code that is often allocated specifically to each bank and its branches.
Is IFSC Code the same for all the branches of any particular bank?
No, the IFSC code is not the same for all the branches of any particular bank. However, the first four digits must be the same as they represent the bank, but the last seven digits will be different, and they often represent the bank branch.
Why the IFSC Code is required in Banking?
It often requires completing fund transfers from one bank account to another bank account. You cannot complete a fund transfer without knowing the correct IFSC code. Therefore, the Indian Financial System Code (IFSC) is required in banking.
Conclusion
Here we come to the end. IFSC Stands for Indian Financial System Code. It is an 11-digit alphanumeric code that represents the bank and its branches. However, this article is all about knowing the IFSC Full Form.
For instance, we have added a complete piece of information that one needs to know about the Indian Financial System Code along with the full form of the IFSC code. We hope this helps. If there is anything else? You can ask us in the comments section without any hesitation.
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