IFSC Code (Indian Financial System Code) is an alphanumeric code (consist of alphabets & numbers) that indicates a bank branch participating in NEFT (National Electronic Fund Transfer System) & RTGS (Real Time Gross Settlement). IFSC Codes are also based on state, district & city. IFSC code is a unique code given to all the branches so that there is less difficulty or blunder in finding another branch for transferring funds &  money is deposited in the right bank and right branch.

It helps to find banks & branches across India.

All bank branches participating in this interbank fund transfer have the list of IFSC codes bank wise. RBI plays a very important role in handling finance being the central bank. Reserve Bank of India has a list of bank branches participating in NEFT/RTGS & their IFSC’s on their website so that it is easy for anyone to view. All the banks are also advised to print IFSC codes on cheques issued by the branches to their customer.

IFSC Code is an 11 character code.

• 1st four characters represent bank
• 5th character is by default. 0 left for future use
• Last 6 characters represent branch 

Example: HDFC0001588

What is IFSC code?

IFSC Code is an 11 character code and IFSC Codes help a person in finding both bank and branch. IFSC code is printed on the cheque advised by RBI in order to indicate a branch and the bank participating in NEFT (National Electronic Fund Transfer System) & RTGS (Real Time Gross Settlement)

How can a person find IFSC codes or a Bank IFSC codes?

When a person is not aware of IFSC codes and wants to opt for NEFT or RTGS, he can find out by the following ways from the link https://www.takebestloans.com/ifsc-codes/

A person has to follow 3 easy steps:

• Input the bank name
• Location &
• Area branch

1. He can also find out, by directly inserting the bank name and address, and even then the branch/es with IFSC codes will be shown.
2. If a person directly has the IFSC code and doesn’t have the other details he can put insert the code and automatically the entire information with the name of the bank, branch, address, MIRC code etc will appear.

MICR (Magnetic Ink Character Recognition) is mainly used by banking sector. MICR is a character recognition used for clearing and processing of cheques and other documents. It is printed at the bottom of every cheque it is known as MICR line. It is easy to scan MICR code and a person can directly see the data collected.

Example:-     046789     402136989    432166   10

                              ↑                  ↑                    ↑              ↑        

                 Cheque No     MICR Code      Prefix     Account No

 It is a 9 digit code & it represents:

• 1st 3 characters represents City
• Other 3 characters represents Bank
• Last 3 characters represents Branch

How can a person find MICR Code?

BY using the link https://www.takebestloans.com/search-micr-codes/

1. A person can directly insert the Bank MICR Code so that he can get rest of the information
2. He can enter the Bank name, city , state or district so that he can get the MICR code and other details
3. He can insert Bank name and branch address / locality. By inserting this he can find his MICR code.

MICR code is used for transferring of funds for which bank, city & bank branch information is required. This helps to make sure money is transferred at the right bank and branch.

What is an IFSC code?

Indian Financial System Code (IFSC) is an alphanumeric code with 11 characters that identifies a bank-branch participating in the two main electronic funds settlement systems in India:

• The Real Time Gross Settlement (RTGS)
• National Electronic Fund Transfer System (NEFT)

A list of bank-branches participating in NEFT/RTGS and their IFSCs is available on the website at https://www.takebestloans.com/ifsc-codes/.

National Electronic Fund Transfer System (NEFT) is used by a person to transfer money electronically from one branch to another bank branch in any part of the country. The money is accordingly settled in batches and is transferred electronically to the other bank account.

Any individual having a bank account can opt for NEFT. There is no minimum and maximum limit. Only for cash based remittance there is Rs 50,000 maximum limit.

During the manual banking function there may be chances of errors. Instead NEFT is the easiest way of crediting the fund. NEFT is easy and safe. NEFT transaction can only take place if both sending and receiving bank branches are NEFT enabled. Since NEFT is one to one electronic transfer of funds it is very efficient, quick and secure

How is IFSC code used for NEFT?

When the NEFT transfer is taking place there are certain inputs to be given, example:

Beneficiary’s name

Beneficiary’s address

IFSC code

Account number

Account type

As IFSC code indicates the bank branch, it helps to get the specific details of the beneficiaries so that there are no further complications. Above details are need in NEFT transaction and hence IFSC code is also required to be certain of the transaction taking place.

Real Time Gross Settlement (RTGS) is continuous settlement of transfer of funds done individually on basis of every order. The Transactions are settled as soon as it is processed. As soon as the funds are received they are settled immediately individually.

RTGS is basically used for huge amounts which need to be cleared within that day itself and where amount is more than ? 2,00,000/- .

How is IFSC code used for RTGS ?

When the transaction is taking place in RTGS, the IFSC code is an essential information required. IFSC code helps identify the bank branch. Only then can the transaction take place. Other information to be shared during RTGS transactions are beneficiary name, bank account number, bank name and branch.