The abbreviation IFSC stands for Indian Financial System Code. It is an alphanumeric code that uniquely identifies an NEFT and RTGS enabled bank branch in India. The NEFT and RTGS are mechanisms of electronic fund transfer (EFT). The Reserve Bank of India allots an IFSC number to a bank branch if it is capable of handling ETF. IFSC codes contain 11 letters and are very simple to understand. The first four letters of an IFSC code represents the bank and the last six letters represent the branch
For example, ALLA0210371 is the IFSC code of the Peddar Road branch of the Allahabad Bank in Greater Mumbai. Here the letters ALLA indicate that the code belongs to Allahabad Bank and 210371 denotes the Peddar road branch. The fifth letter in the code is always zero (for the time being). It has been kept for the possible future use.
IFSC codes are important because they can uniquely identify a bank branch. This is extremely important in case of computer based electronic fund transfer. Computers are not humans; computers can work properly if input given to them is absolutely clearly. Any confusion is identifying a bank branch may lead to a wrong fund transfer. IFSC codes make sure that computers can easily identify bank branches without any confusion.
IFSC codes are required to be entered whenever you want to make an electronic fund transfer through NEFT or RTGS. Whenever you'll register a beneficiary in your netbanking, you will have to provide IFSC code of the branch where the fund needs to be sent. At FindBankIFSCCode.in you can find IFSC code of any bank in India. Find the code and use it.
NEFT stands for National Electronic Fund Transfer. It is one of the widely used electronic fund transfer mechanism in India. NEFT mechanism enables transfer of funds from one bank to another using electronic messages. NEFT is not real time transaction. It means that the NEFT transitions are not processed immediately. Instead, such transactions are processed in batches (usually once every hour). NEFT system was launched in November 2005 and by 2008, it accounted for more than 42% of the overall EFT taking place in India.
RTGS stands for Real-time Gross Settlement. In addition to NEFT, this is one of the most popular EFT system being used in India. RTGS transactions are executed immediately; there is no time gap and the fund settlement is done without waiting.
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