Electronic funds transfer has achieved sufficient appeal with a booming economy and subsequent demonetisation. The ease and speed with which such a transfer may be executed contribute to its widespread acceptance. The IFSC Code is the most critical data for domestic transfers that ensures everything goes through without a hitch.
In this article, we will go through who is responsible for creating the IFSC code and who has the authority to modify it.
Who generates the IFSC code?
You could be under the impression that banks generate IFSC Codes. Technically, the Reserve Bank of India has all the cards. IFSC codes are assigned and generated by RBI to be utilised by financial institutions all around the nation. In addition, the Reserve Bank of India keeps a list of the IFSC Codes used by different bank branches throughout the country to facilitate the seamless operation of the online money transfer procedure.
Going to the Reserve Bank of India’s website will allow you to look for the IFSC Code of any bank operating in the country. The website’s footer menu link will lead you to a webpage where you may pick your desired bank. Then input the institution name to acquire its IFSC Code.
How unique is the IFSC code?
Every single bank has its own one-of-a-kind IFSC Code. These identifiers are also created to guarantee that electronic financial transfers are completed quickly and without complications. Even transfers via RTGS and NEFT rely only on the bank account number and IFSC code to complete the transaction.
Who is authorised to modify the IFSC code?
Reserve Bank of India has complete discretion over issuing IFSC Codes, including the authority to create, amend, reassign, and revoke them. Although it is not a common practice, the Reserve Bank of India has the prerogative to adjust an institution’s IFSC code. It is simple to get the updated IFSC Code from the bank whenever a branch’s code is modified. Account holders may request a new chequebook with the updated IFSC code.
FAQs
Who allocates IFSC codes?
To locate a specific bank branch, the Reserve Bank of India issues the IFSC code to each of India's bank branches.
What exactly does the IFSC code represent?
The bank is represented by the first four digits of an IFSC code, while the branch is represented by the last six characters of an IFSC code. The value zero represents the fifth character.
Is there an identical IFSC code for two branches of the same bank?
Distinct branches of the same bank will have different IFSC codes. So even if you have two accounts with the same bank, you will need to use their respective IFSC numbers.
When relocating a bank branch, is it necessary to update the IFSC code?
Since IFSC codes are specific to each bank branch, they must be updated whenever a branch is relocated.
