IFSC stands for Indian Financial System Code.
IMPS, RTGS and NEFT are the 3 major electronic funds settlement systems in the country. IMPS (Immediate Payment Service) being the latest addition.
The Indian Financial System Code, better known as the IFSC code, is an alphanumeric code. IFSC identifies a bank branch that participates in these fund transfer systems. It is to be noted that IFSC is 11 character code. The first four letters represent the bank and the last 7 characters represent a particular branch.
When you e-transfer money inter branch through NEFT, RTGS or IMPS, you are required to provide IFSC code of the receiving bank branch to ensure that the funds are transferred/received by the right person. IFSC codes are used to avoid any confusion in bank names and branches.
A number of banking institutions in India use the IFSC code to carry out RTGS and NEFT transfer for streamlining and identifying monetary transactions between different bank branches and accounts. IFSC codes are one of the most essential aspects of validating banking transactions. With the right knowledge of the IFSC code, you’re able to make transactions or receive payments online.
All it takes is a few simple steps. Use the Search Box to find any bank’s IFSC code in a hassle-free manner. Using the above search functionality, you are required to select the “Bank Name” first. Once the “Bank Name” is selected, then locate the branch step by step through “State” and “City”. Also it allows you to find an IFSC code by entering first few letters of the bank name, state name, district/city name and branch name wise and therefore it is very intuitive.
MICR basically stands for Magnetic Ink Character Recognition technology. This modern technology is utilized for verifying the originality or legitimacy of paper documents like cheques in banks. The MICR technology is as useful as IFSC codes that secure NEFT and IMPS transfer methods.
RTGS stands for Real Time Gross Settlement, which is an online system meant for settling financial transactions. Most of the financial systems use the RTGS method for making payments in a simplified manner. You need to enter the IFSC code of your bank’s branch to initiate an RTGS payment just like you do in NEFT and IMPS payments.
NEFT or the National Electronic Fund Transfer system is a popular money transfer system in India. It is known to facilitate the corporate houses and individuals to electronically transfer funds from any particular bank branch. The IFSC code of the bank’s branch is required to carry out an NEFT transfer just like in the case of IMPS and RTGS transfer.
Immediate Payment Service or IMPS is a relatively new service in India. Here, the customers can transfer money quickly from one account to another within the same bank. Similar to NEFT and RTGS transfer, IMPS does not have any upper limit for the maximum amount of money which can be transferred.