IFSC Code: Meaning, Importance, and How to Find It for Your Bank
5 min read | 2 months ago
Do you have a sudden financial emergency or urgent need to meet? You can consider applying for a personal loan in this case. However, it’s not always that simple, although these loans are relatively easier to obtain than many other forms of debt. While looking up lenders and their offerings, you’ll come across the CIBIL score requirement along with other eligibility. Can you still get the loan if you don’t have a CIBIL score? That’s what we strive to answer in this article.
Meaning of IFSC Code
Indian Financial System Code is the full form of the acronym and it contains a total of 11 alphanumeric characters. The purpose of the code is the quick identification of specific bank branches. Every branch that carries out online fund transfers is given this code for enabling better transactions and routing.
It is not the same as the MICR (Magnetic Ink Character Recognition) code that enables electronic cheque processing and has 9 digits in total. The SWIFT code is also different, since it enables global transfers across banks. Whenever you wish to send or receive money internationally, the SWIFT code is required in place of the IFSC code (it is for domestic transfers).
Key Components of the IFSC Code
The IFSC code has several core components, including the following:
Alphabets-First Four Characters
The first four characters of the code are indicative of the name of the bank. They are alphabetic and help identify the bank that is linked to the transaction.
Fifth Character
The fifth character is always 0. It is presently the same for all IFSC codes and has been reserved for use in the future.
Final Six Characters
The final six characters contain an alphanumeric combination that helps identify the particular branch of the bank. Funds can thus be accurately sent to the proper locations.
You should also know that the IFSC codes are allotted uniquely by the RBI and this means that they are not the same for any branch or bank.
Why is the IFSC Code Important?
The IFSC code is crucial for the smooth running of the online banking system and fund transfers. Here’s why:
Transfer Accuracy
The IFSC code has a vital role to play in making sure that funds are sent accurately to the right bank branch minus any confusion or errors.
Electronic Transaction Systems
It is a crucial component of NEFT, IMPS, or RTGS transfers, since they depend only upon the code to enable efficient, fast, and secure transfers.
Digital Banking & UPI Transactions
The IFSC code is a must while carrying out any online transaction from net banking or mobile banking platforms. It thus enables several transactions including tax and bill payments, insurance premiums, EMIs, and more. Cross-bank transfers involving UPI also require the IFSC code.
Now that you are aware of the importance of the IFSC code for various transactions, how do you find it quickly? Here are some insights on the same below.
Finding the IFSC Code Of Your Bank
Here are the ways in which you can find your bank’s IFSC code seamlessly.
Through Your Checkbook
Find the IFSC code printed on the cheque leaves of your bank. It is mostly given on the top of the leaf, either to the right or left side.
You can check the front page of your passbook for the details of your account, branch, and also the IFSC code. You will usually find this on the top right corner.
On the RBI’s Official Site
Go to the IFSC section on the official website of the Reserve Bank of India (RBI) and you can search for the code by entering the name of your branch or bank.
On the Official Bank Website
Many banks have branch locator tools or similar services available on their websites. You can use them to find your local branch and its IFSC code easily.
Conclusion
The importance of the IFSC code should not be underestimated, since it is a vital identifier for all major online transactions and fund transfers. Hence, you should use the above-listed methods to find your branch IFSC code and note it down safely for future reference. If you are looking to set up a savings or current bank account with a reputed financial institution, consider Unity Small Finance Bank. From smooth digital banking solutions to a wide range of accounts, there are several benefits available for customers here.
About Unity Small Finance Bank
Unity Small Finance Bank is committed to making banking simpler and more accessible for everyone. Our services include Savings Account, NRI account, Current Account, Fixed Deposits, and Personal Loans offering flexible tenures and attractive interest rates. We also offer financing options like MSME Loans and Microfinance to support businesses and underserved communities. Learn more about Unity Small Finance Bank here.
