Codification for Electronic Transfers in India

Suppose I must make an electronic transfer of money to a relative in Dankuni, West Bengal, and I only know the beneficiary name, the account number, the name of the bank, and the branch, but not the code to make the transfer, that is, the IFSC code. Well, that 11-digit alphanumeric code is public and can be found on the website www.ifsccode.com. The abbreviation IFSC code means Indian Financial System Code and is designated by the Reserve Bank of India (RBI), the Central Bank of India. The IFSC code is used to uniquely identify a bank branch during the electronic transfer of funds or the transfer of money between banks. To initiate any bank transfer from one account to another, the user must provide the ifsc code of the beneficiary bank. As we said the Ifsc code consists of 11 characters, for example, if we want to know the Bank of India IFSC Code we must know the branch. By browsing the website www.ifsccode.com we write the name of the bank, the State, the District and the Branch, and they will give us all the data of the IFSC code for that branch. So, the branch in Dankuni in West Bengal of the Bank of India is BKID0004299. Now, what does each of these 11 characters mean? In the Bank of India IFSC Code, the first 4 characters (BKID) represent the code of the financial institution, Bank of India, the fifth character (0) is reserved for future use, and the last six characters (004299) represent the only one bank of India branch in Dankuni, West Bengal. But for what kind of transactions should we know about the IFSC Code? The Bank of India IFSC Code or HDFC bank ifsc code search by account number must be used to carry out the following financial operations if the beneficiary has an account with the Bank of India or any other banking institution in India.

• The Real Time Gross Settlement (RTGS). It can be defined as the continuous (real-time) settlement of funds transfers individually on an order by order basis (without netting).
• The National Electronic Funds Transfer (NEFT). It is a national system that facilitates individuals, companies, and corporations to electronically transfer funds from any bank branch to any individual or company that has an account in any other bank branch of the country. NEFT transfers are also known as electronic checks since the funds are not transferred in real time but are settled in batches.
• The instant interbank electronic money transfer service. It is the immediate payment service and is commonly known as interbank mobile payment service (IMPS). It is an immediate payment service in a 24 hours environment.
• Centralized Funds Management System (CFMS).

An important fact that gives us the Reserve Bank of India (RBI), on the website www.ifsccode.com is that all the account numbers within a branch start with the branch code so, if you want to cross check the ifsc code while adding beneficiary account the ifsc code last 6 characters will be the first six characters of the beneficiary account number in most cases.