IFSC Code and its importance in Fund Transfer
The Indian Financial System Code (IFSC) is an 11-digit alphanumeric code used for online means of fund transfers. The Reserve Bank of India (RBI) assigns an IFSC code to branch each bank. It assigns a unique alphanumeric code to each bank branch to recognize the bank branches and direct the transfer of funds without any errors.
You need the IFSC code while conducting fund transfers electronically through facilities like National Electronic Funds Transfer (NEFT), Real-Time Gross Settlement (RTGS) and Immediate Payment Service (IMPS). The format of a typical IFSC code is as follows:
- The first 5 characters indicate the bank code
- The 5th character is a zero
- The last 6 characters indicate the branch code
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