A Beginner’s Guide to IFSC Code
Banking
What has changed over these years is your way of banking and technology in banking because of IFSC. We have explained the below full form of IFSC. We have traveled a long way from the barter system to coins & notes and internet banking. How the banking system has evolved over the years is commendable!
The banking sector is among the most rigorous and challenging sectors we have at present. There are many factors involved in the smooth functioning of the banking system. The absence of anyone can cause damage beyond repair.
Money transfer is not a new concept; it has been prevalent for a long time. Only technology has progressed, and the process is faster now. Let’s try to understand how the IFSC code plays a role in banking and its significance in money transfers.
What is the Complete Full Form of IFSC?
The complete full form of IFSC stands for Indian Financial System Code. It is an alphanumeric code of 11 digits code that specifies the bank branch where you hold an account.
Where to Find the IFSC Code?
You can find them on your passbook, internet banking dashboard, or mobile banking app. Also, the IFSC code is available on your issued checkbooks from the respective branch. Another way of finding the correct IFSC code is searching for it through a third-party like, Google search by entering the address of your bank’s branch.
What is the Usage of the IFSC Code?
Till now, you must be aware that the full form of the IFSC code identifies the branch of your respective bank accounts. Earlier, money transfer was problematic without the proper identification of the bank branch of the respective accounts. It led to problems in transferring money and created unnecessary disputes between banks and customers.
To solve the problem, as internet banking developed and usage of it for transferring money became frequent, RBI came up with IFSC Codes. The code helped make transfers through RTGS, NEFT, and IMPS.
These platforms transfer money quickly and simply. With the usage of the IFSC code, the discrepancy got reduced to zero. However, putting in the wrong or incomplete IFSC code can only accept your payment and lead to successful transactions.
Make sure to use the IFSC code only for domestic transfers, as international transfers need not work with this code. You might need a SWIFT code for international transactions. Also, you can pay via third parties like Razorpay or payu.
Advantages of IFSC Code
Some of the advantages of the IFSC code are given below go through them:
1. Smooth Financial Transactions
Through the IFSC code, your financial transactions are smoother, and there are negligible chances of discrepancy in your transaction. You need not worry about getting your transaction blocked or transferred to the wrong beneficiary.
2. Faster Transactions
Gone are the days you had to wait several weeks to receive your money. With the help of the IFSC code now, your transactions are done within 24 hours. Just make sure to provide the correct IFSC code.
Now you receive your payment from your employer within 24 hours, and the employer can also generate a payment for multiple employees simultaneously, which increases the productivity of employer and employees.
3. Prevents Any Potential Fraud
All thanks to the IFSC code, your transactions are more secure and safe. The money sent from one account is received in the beneficiary account without any leakage or fraud during the transaction process. Fraud in banking or financial transactions is a significant concern in the banking sector that harms the customer.
To prevent potential fraud, RBI has assigned a unique IFSC code to every branch under the regulation of RBI so that any potential fraud is curbed beforehand.
4. Made Internet Banking a Reality
Let’s be honest; internet banking has been possible because of the IFSC code; without the code, internet banking would not have been possible or feasible. You can’t even imagine the transaction process was so tricky before the coming of internet banking, but now, with Internet banking, the reality is something else.
Full Form of IFSC in a Nutshell
The 11 digits alphanumeric IFSC code is a boon for the banking sector and has made the process of financial transactions faster and smoother and increased the productivity of employees and employers. It is a safer and more reliable option and has made internet banking a living reality that was unimaginable many years ago.
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