IFSC Full Form
What is IFSC? And what is the importance of the IFSC Code? Many of us know that the IFSC code is required by the banks for transaction purposes. But do we know the exact meaning or the full form of it? Many of us will say no. Well, without further ado, let’s get started.
The full form of IFSC is the Indian Financial System Code. This code is an alphanumeric code that consists of 11 digits. This code is used to identify the branches of a particular bank. No two IFSC codes are the same. One can easily identify the bank through its IFSC Code. If someone wants to know the IFSC code of a particular bank, then he/she can do so by taking help from the browser. The IFSC codes of several banks are available on the internet.
Well, the IFSC code is also written/ stamped on the cheque-book. To transfer money through NEFT or RTGS, the IFSC code is required. Rather for every transaction, the code is required.
Now, to have the IFSC code, one needs to have the following things:
- Name of the Bank
- Name of the State (where the bank is located)
- Name of the District
- Branch Name and the Address
Now, who provides the IFSC code to the banks? Well, the Reserve Bank of India (RBI) provides the IFSC code to the banks and their branches so that they can provide the NEFT and RTGS facility. Along with the banks, the RBI also monitors the transactions (RTGS & NEFT) so that the transaction is hassle-free.
So, how we write an IFSC code? Well, it is interesting to note that among the 11 numbers of the IFSC code, the first four are the letters that tell us the name of the bank. The remaining seven specifies the branch number of that bank. For instance, the IFSC code of Punjab National Bank for the Faridabad branch is PUNB0317900. If we closely look at this number, the first four are the letters specifying the bank name and the other seven is the branch number (Faridabad). We have to share bank information and the IFSC code so that the transaction can take place. Without the IFSC code, the transfer does not take place.
Now, let us look at some of the benefits of the IFSC Code.
- Internet Banking made Easy:
Internet Banking is considered one of the safest forms of banking. Nowadays, we transfer money or get it through online transactions anywhere, anytime. People prefer internet banking as compared to traditional banking because it is efficient and saves time. So, for online transactions, the IFSC code is very important. Without the IFSC code, the transaction does not take place.
- Fewer Chances of Fraud:
With the help of the IFSC code, there are fewer or negligible chances of fraud. Internet Banking has become safe with the IFSC codes. The unique codes of the banks provided by the RBI ensure smooth, safe, and efficient transactions. Therefore, there are negligible chances of theft/ fraud.
- Better Communication:
With the help of IFSC codes, the communication becomes better between the sender and the receiver. There is no intermediate between the sender and the receiver. Thus, transactions take place smoothly wherein both the parties receive the E-Mails regarding the transaction.
- Going Paperless:
With online money transfers and the IFSC codes, people are now going paperless i.e. no traditional banking (signing, filling slips, etc). With the help of such codes, people can enjoy electronic transfers without worrying about the paperwork. Moreover, business-related transactions have also become easier and paperless.
- Validation and Settlement:
The IFSC code has one more advantage i.e. the validation and reconciliation with other banks efficiently takes place. Without the IFSC code, the customers will be anxious and the banks will undergo the risk of the remittance of funds. The IFSC codes are also required for crediting the salaries into the client’s account.
IFSC Code is one of the important parts that are required for electronic transfers. The main aim of this code is to make online transactions safe and efficient. The IFSC codes help in monitoring the transactions so that neither fraud nor theft takes place. Sometimes, the transaction can fail if the incorrect code is entered. Therefore, it is advised to fill in the correct code to have a successful transaction.