Today, individuals, businesses and corporations in India do not have to rush to banks for each and every transaction and transfer of funds. One can find bank customers who rarely use bank checks to make payments. Advances in IT have enabled payments to be received and sent electronically, via Net Banking Electronic Funds Transfer (EFT) systems, rather than by check payments.

Net banking facilities allow bank customers to transfer money online from any corner of the world through a computer with an Internet connection. It wasn't the same a few years ago when people were forced to visit their bank branch in person, stand up and wait in line for their turn to come, fill in the details, and deposit funds for sight drafts/account turns. from the beneficiary to make payments The other option was to sign the checks for the payments and wait for their authorization. The old money transfer process was unusually long and slow, and also a waste of valuable business hours.

Full form of the IFSC code

Today, banks have their own IFSC Code, and in its full form it is known as "The Code of the Indian Financial System (IFSC)". The Reserve Bank of India provides the code to each bank for use by RTGS, NEFT and the Centralized Fund Administration System (CFMS), important systems for receiving or sending payments.

IFSC Code Definition

The Indian Financial System Code has unique 11-digit serial characters to identify the bank's branch. Digits are a combination of alphanumeric characters, where the initial 4 digits identify the bank branch and are in alphabets, the last 6 numbers in the series are numeric or alphanumeric in order, which means the bank code and the fifth digit in the average is the number of future use of a bank (0) Zero. Most banks print these unique characters on the checkbook sheets.

Who uses IFSC codes

Any individual, corporate, business, commercial or business center in India, with or without a bank account, can send payments through the NEFT and RTGS systems using the unique numbers of the bank branches. The Reserve Bank of India (RBI) has also mandated all banks to provide these unique characters to their clients to facilitate fund transfers. RBI also changes bank codes from time to time and regulates them. The NEFT payment transfer system is only applicable in India and is not allowed for transactions or transfers of foreign money.

Net banking customers can find the IFSC Code of the target bank through bank check sheets, bank branch customer service and online sites, but must obtain confirmation from the bank branch at question before using unique numbers obtained from the online site.

Author's Bio: 

When you send money, you want to make sure that your funds get to the intended bank.