What are the Advantages of IFSC Code?

IFSC stands for Indian Financial System Code. The code comprises of 11 characters. The first 4 characters indicate the name of the bank. For example, the first four letters of the code, SBIN0000XXX indicates the State Bank of India. The fifth character is ‘zero’ and it is reserved for future use. The last six characters indicate the unique branch code.

By using IFS code, the location of the bank branch in a city, district or state can be done very easily. The online fund transfer option NEFT (National Electronic Fund Transfer) and RTGS (Real Time Gross Settlement) can be accomplished without errors by using the IFSC.

Benefits of IFSC Code

As you search for IFS code online, you will find the bank name, address, phone number, and other useful information. You will enjoy the following benefits by using IFSC code:

  • Internet banking operations
  • Error-free transactions
  • Instant money transfer
  • Transfer of money through NEFT and RTGS
  • Paperless money transaction
  • Quick validation and reconciliation

Internet Banking Operations

You can perform internet banking operations in a seamless manner by mentioning the IFSC code in NEFT and RTGS transactions. The online banking is a simple, quick and effortless process. You can save time and resources by making online payments.

The money can be transferred from one bank account to another bank account in a safe and secure manner by using online features.

 If you transfer the money to an account within the same branch, it will take place instantly. The money will be deducted from the sender’s account and will be credited into the beneficiary’s account.

In the case of NEFT and RTGS, the transfer of funds will take place in batches or in real-time as per the case. The transfer will take place as per the RBI guidelines on bank working hours. You should be aware of the NEFT or RTGS cut-off timings. If the amount is not credited on the same day, it will be credited on the next working day.

The Net Banking User should Provide the Beneficiary’s IFSC Code SBI to Transfer Funds.

Error-free transactions

By using IFSC codes, transactions across banks can be done without any errors. Each bank and branch will possess a unique IFSC code. Hence, there will not be any chance of any fraudulent transactions.

Instant Money Transfer

To send money to a beneficiary, you don’t need to visit a bank branch or wait in long queues. The online transaction can be performed by mentioning the IFSC code.

If you have access to mobile phone or laptop with internet connection facility, the money can be transferred by logging into your bank account at any time and from any part of the world. The transactions will take place instantly or within a few minutes as per the type of online transaction.  

Transfer of Money through NEFT

The money will be transferred into the beneficiary’s account in a short period of time. You should initiate the transaction during working hours so that the amount is transferred on the same day.

You will want to add the beneficiary account before sending the money. While adding the beneficiary’s details, you should provide the bank name, account number and IFSC code of the beneficiary’s bank branch.

Transfer of Money through RTGS

Transactions above Rs. 2 lakhs can be completed through RTGS in an easy manner. It is the fastest and instant mode of online money transfer option.

You can send money to a registered beneficiary as per the terms and conditions of the online banking facility.

Transfer of Money through IMPS

IMPS (Intermediate Payment System) will enable the transfer of money from one account to another account in a seamless manner. You can transfer a small amount to a beneficiary by mentioning the account number and IFSC code in your mobile app or internet.

Paperless Money Transactions

As you perform IFSC search and provide the correct code, the money will be transferred to the beneficiary quickly and safely. The online transaction will eliminate the usage of paper. Thus, you will save the environment by choosing an online money transfer option.

Quick Validation and Reconciliation

The transactions based on IFSC Code SBI will be validated very quickly. There will not be any conflict as the transaction will be quick and transparent. The transaction will take place by deducting the money from the sender’s bank branch and crediting the money into the beneficiary’s bank branch.

Hence, the IFSC code of the sending bank branch, as well as the IFSC code of the receiving bank branch, will be used while recording the transaction. There will not be scope for discrepancy and accounts can be settled quickly in a seamless manner.

Advantages of IFSC Codes

IFSC codes are introduced by RBI to provide the best banking experience to the customers.

  • Easy identification of the bank and its branch - Each and every bank and branch is identified with the help of the IFSC code. The identification is used to complete an online fund transfer.
  • Accomplishes modernization of bank operations - Banks can meet the emerging needs of individuals and corporate clients with IFSC based online transactions.
  • Saves the environment - By using IFSC code-based online transactions, you can perform paperless transactions. You will resort to environment-friendly measures by eliminating the use of the paper.
  • Quick transfer of money - The money can be transferred quickly by using online channels and you will want to provide the IFSC code of the beneficiary in the online form.
  • Facilitates NEFT and RTGS - The money will be transferred across bank branches through NEFT or RTGS as per your requirements and IFSC code should be mentioned in this process.

In a Nutshell

IFSC code is used in performing various kinds of financial transactions by customers as well as the banks. The code simplifies the online transactions and it is helpful for individual customers and corporate clients. You can search the IFS code online to find out the correct code to carry out various kinds of online transactions.