6 Benefits of IFSC Code Everything you Need to Know

Gone are the days when you had to wait in long queues for getting your funds transferred. With internet booming by the day, now everything can be done even while sitting at home. Banking transactions are no exception. With almost every bank supplemented with online banking, transferring funds from one bank account to another has become easier these days. In this regard, IFSC Code plays a pivotal role. This article gives the whole nine yards on how IFSC code helps in a faster fund transfer!

What’s IFSC Code?

Indian Financial System Code or IFSC Code is an eleven-digit alphanumeric code allocated by the Reserve Bank of India. All banks that are a part of NEFT or National Electronic Fund Transfer network have to have these codes. Since each bank branch has a unique code, IFSC code helps identify the location of a specific bank branch. Though IFSC code for every branch differs, there is one thing which is common in all IFSC codes- the fifth character ‘ZERO’. It remains same and has been kept for future use. One can also search bank by IFSC Code, as the first four digits of IFSC Code indicates the bank name. For instance

IFSC Code Benefits

Just for your knowledge, you can find IFSC code in your chequebook or on the front page of your passbook. In case you don’t have a chequebook or passbook, you can find the IFSC code of a particular bank by visiting any third party websites such as Policybazaar.com. Thereby, go to the IFSC code page, select the desired options from the drop-down menu, and get the IFSC code of any bank branch.

As IFSC Code has made online transfer convenient and safe at the same time, here’re some of the benefits of using IFSC Code while transferring funds.

It Makes Internet Banking Easy

Online banking is certainly the easiest and the safest form of banking. Transferring or receiving money over the internet has become an important part of one’s life. Now, customers prefer an online transfer to the traditional method of banking for various reasons. Firstly, it saves time. Secondly, it is a safe way to transfer money as the money is credited to the beneficiary’s account within 24 to 48 hours.

IFSC code is profoundly important for online banking. At the time of online transfer, the user is required to provide certain information including the IFSC Code of receiver bank branch. Without this, the fund cannot be transferred.

Money Transfer- A Matter of Few Clicks Now

Thanks to online banking, we no longer wait in long queues for doing small transactions. With the help of IFSC code, now the fund can be transferred in no time. Quick and seamless transfer of money is possible from any corner of the globe. This is a relief in an emergency when you need to borrow money from someone as the transaction can be done instantly.

IFSC Code = No Fraud

With IFSC Codes, online banking has become a safe platform for all banking transactions. The unique codes offered to every bank and its branches to ensure a safe transaction. Hence, there is no chance of fraud or theft. Any security breach is next to impossible with IFSC Codes.

Quick Communication

IFSC Code helps in maintaining a clear transmission between the sender and receiver. If an online transaction is initiated, be it credit or debit, a message or an e-mail is sent to both the parties from the concerned banks.

Encourages Paperless Money Transfers

Another striking benefit of IFSC code is that it encourages paperless banking. With the help of IFSC, you can now enjoy electronic, paperless fund transfer. This way, it contributes to environment-friendly banking. Due to IFSC Codes, business transactions are now simple, quick and paperless as well.

Helps Banks for Validation and Settlement Purposes

Another advantage of IFSC Codes is that they help in validation and reconciliation of various banks across the country. Without IFSC codes, many banks will be at risk while remitting funds for the customers. In case the customers are anxious about furnishing IFSC of a particular bank branch, the bank must educate them about how IFSC code helps in the safe initiation of bank transaction.

Moreover, IFSC Codes are also helpful in meeting the needs of individuals as well as corporate clients. Even government agencies use IFSC for disbursing funds and salaries. Overall, with the introduction of IFSC Code, banking has become more convenient across the country.

Wrapping it Up!

IFSC codes are relevant for electronic fund transfers. The main motive of IFSC Code is to make internet banking simple and safe. Over time, IFSC Code has gained an excellent reputation owing to the security it provides. It plays a tremendous role in identifying, monitoring, routing and authenticating transactions from an accuracy point of view.

However, the only time when things may go wrong with IFSC is when you provide an incorrect IFSC Code. That’s why it is very important to be mindful while filling the IFSC code of a particular bank branch. A minor error can lead to an unsuccessful transaction or the money may get credited to someone else’s account. So, be cautious!