IFSC Code is something people asked for when they go to the bank or bank website to transfer fund through NEFT and RTGS system.
What is IFSC Code?
IFSC Code is refers to the Indian Financial System Code. It contains 11 alphanumeric characters. This code is to identify any bank branch in India uniquely. It mainly required for electronic transfer of funds via NEFT and RTGS system. These codes are assigned by RBI to banks. For every customer who wants to transfer their money through RTGS or NEFT it is compulsory to know the IFSC code of bank in which he wants to transfer fund.
Initial four of 11 characters are alphabets which represents bank, next character is always zero (0) and remaining six characters may be alphabets or numbers and represents branch of bank. RBI on its official website provides IFSC codes of all bank branches in India. Other than this IFSC codes can be easily found on bankkhojo.com if a person has following information about bank:
IFSC code is to identify bank with its branch and has main importance in NEFT and RTGS systems.
NEFT refers to National Electronic Fund Transfer system. This provides individuals facility to transfer fund via electronic medium which is very quick. Sometimes NEFT transfers also called as e- cheques. NEFT does not offer any minimum limit of transfer.
In every bank 11 settlement takes place in a day and fund is transferred via this settlement. NEFT does not offer real time transfer but still it transfer very quick in few hours. As money is transferred to the specific branch, IFSC code is very important to identify the right branch for fund transfer.
There are some charges also associated with transfer through NEFT
RTGS refers to Real Time Gross Settlement System to transfer. It is called so because real time suggest transfer of fund within second and Gross settlement means transaction is done on one to one basis and they are not bunched with other. It is largest and fastest transaction system. It has a minimum limit of transaction Rs. 2 lakhs without any maximum limit.