Guide to the Indian Financial System Code IFSC www.deekpay.com

Introduction to the Indian Financial System Code IFSC

IFSC (Indian Financial System Code) is an important part of India's banking infrastructure. The code is a unique identification code that identifies theNational electronic fund transfers The Reserve Bank of India (RBI) uses IFSC for electronic transfers between banks. The Reserve Bank of India (RBI) uses IFSC for electronic transfer of funds between banks, which allows quick identification of the source and destination of funds.The IFSC code consists of 11 alphanumeric characters, the first four of which are letters that identify the bank's name, and the last six of which are either numeric or both letters and numeric, which identify the branch code.

IFSC Code Example

IFSC Code: PUNB 0 392500

The first four characters are PUNB and refer to Punjab National Bank. The last six characters refer to the branch of the bank, in this case Mahalakshmi Layout Branch, Bangalore.

IFSC codes are defined byReserve Bank of India (RBI) assigned, these codes are unique, which means that no two banks or their branches can have the same code.

Note: Banks cannot modify, change or update the IFSC code unless there is a reorganisation or merger.

When to use IFSC

IFSC codes are available for the three main electronic funds transfer modes (NEFT,RTGS respond in singing IMPS) transfers. These systems reduce the likelihood of errors in transactions, as funds transfers are only authorised after accurate details such as bank account numbers and bank-specific IFSCs have been verified.

IFSC code is required whenever a user needs to transfer funds from one bank in India to another and also to transfer funds from overseas to an account in India. In case of money transfer, the name and account number of the recipient's bank and the IFSC code are also required.

IFSC codes for India only

IFSC codes are used only within India. IFSC codes play a vital role in ensuring accurate and secure electronic fund transfers, facilitating internet banking transactions and enabling seamless inter-bank communication within India.

Some data on IFSC codes

130,000 Codes: Currently the Reserve Bank of India allocates about 130,000 IFSC codes to banks and branches. These codes help in identifying the banks and branches to ensure that funds are transferred to the right recipient. RBI maintains a database of IFSC codes through which a complete list of all IFSC codes in India can be viewed. Sub-lease Branches: All major banks and their branches are allotted separate IFSC codes and can be easily identified by their codes; e.g. - SBIN0003357 for State Bank of India or SBI branches). Sub-lease branches refer to smaller banks, such as co-operative banks that have not been assigned an IFSC code that can be easily recognised by the name of the bank. For example, YESB0NCCB01 could easily be mistaken for a branch of Yes Bank, when in fact the code is used by Nawada Central Co-operative Bank. These smaller banks are essentially relying on the larger banks to process IFSC codes. IFSC Codes for Payments Banks: Payments banks are a new banking model introduced by the Reserve Bank of India (RBI) earlier this year. Payments banks can perform certain banking functions such as accepting deposits (up to INR 100,000) and provide customers with facilities such as internet banking, mobile banking, debit cards and ATM facilities. However, no form of lending (or issuance of credit cards) is permitted. Currently, four companies (Airtel, India Posts, PayTM and Fino) have been awarded thePayments bank licenceThe IFSC code is a separate IFSC code for the payment banks. In the context of IFSC codes, payment banks are assigned their own separate IFSC codes. For example, Airtel Payments Bank has registered only one branch so far.

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