Online account-to-account money transfers have skyrocketed after demonetisation. Due to the convenience of sending money electronically and the speed with which it may be received, these types of transactions have become more common. The IFSC code is an essential piece of data for performing domestic transfers inside a country.
However, it needs to be clarified whether any IFSC Code may be used. Here, in this post, you’ll learn the details.
Is the IFSC code unique?
Every bank and branch has its own IFSC Code. A parallel may be drawn to the PNR code used for train bookings, guaranteeing that no two customers would sit in the same seats. Based on this idea, IFSC Codes are created, allowing for straightforward and uncomplicated electronic money transfers. In reality, the bank account and IFSC code are all that is required to initiate a transfer using NEFT or RTGS at the present time.
See also: What is the IFSC code format?
Who issues the IFSC code?
There is a common misunderstanding that banks come up with IFSC Codes. Only the RBI, acting via the parent bank’s central office, can create and distribute IFSCs to individual bank branches. The RBI keeps track of all of the IFSC Codes for all of the Indian banks and branches that provide customers with the option of making electronic financial transfers. The IFSC Code for any given bank branch may be obtained from the RBI website.
Can I use any IFSC code: Tips for appropriate IFSC usage
When transferring funds online, using the correct IFSC Code is crucial. Here are some helpful hints to keep in mind about IFSC Codes:
- Check the IFSC Code with trusted online resources like the RBI and the bank’s official website.
- Before hitting the “Add Beneficiary” or “Submit” buttons, make sure the IFSC code and the bank account number are correct.
- If you’re adding a new beneficiary to your account, it’s a good idea to transfer a modest amount, say Rs. 10, and wait for their approval before proceeding. Once the recipient has confirmed they have received the test amount, you may transfer the remaining funds.
FAQs
Can several IFSC codes be used?
Your account will be debited even if you provide the IFSC code for a different bank branch. If the incorrect IFSC is provided, the transaction will likely be cancelled.
Is the IFSC code of each bank identical?
All inter-bank transactions must include this code. No two branches will ever have the same code, even within the same bank. The first four digits of an IFSC code identify the financial institution, and the last six identify the specific branch.
Is the IFSC code important when transferring money?
The IFSC Code is used to specify the particular bank and branch where the account of the transfer's recipient is located. That's why systems like NEFT and RTGS need the IFSC.
Does the IFSC code vary per branch?
Each bank branch has its own IFSC code, which will need to be updated whenever the branch location is changed.
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