Benefits of IFSC Code, IFSC Code for Fund Transfer

IFSC stands for Indian Financial System Code. It differs from bank to bank and banks' branch to branch.

IFSC code is a unique 11-digit alpha numeric code which means that these digits are a combination of some alphabets and some numbers. First 4 characters of IFSC code represent the name of the bank, followed by a 0 (the 5th digit) and the last 6 numbers of it show the bank location.

IFSC code is assigned by the RBI to the bank branch to identify each branch of every bank in India. The IFSC code used for Real Time Gross Settlement aka RTGS, NEFT and IMPS finance transfer systems.

One must also know as to what is the requirement of IFSC Code to make RTGS, NEFT and IMPS transactions, which is very important.

Benefits of IFSC Code

There are lots of benefits of IFSC code in the banking system. These benefits of IFSC code have been mentioned below:

(1) Saves Time

It saves a lot of time by eliminating time consuming factors to transfer your money such as:

• Issuing demand draft
• Writing bank cheque
• Depositing Cash in the account
• Withdrawing funds from the account

(2) Advantageous for Beneficiary

As the beneficiary gets the amount directly credited in his bank account, his/ her time and effort is also saved. He/ she does not have the need for going to the bank and stand in queues to deposit the amount/ cheque/ bank draft.

(3) Reduces Risk Factor

Online fund transfer using IFSC code reduces the possibility of risk, fraud or any kind of loss.

You can easily find out the IFSC code of your bank branch with the help of Search IFSC Code platform provided by Codeforbanks.com

(4) Immediate Transfer of Funds

With the help of IFSC code, an immediate transfer of funds takes place from one bank account to another bank account. One can use RTGS, NEFT or IMPS methods to transfer the funds using IFSC Code. If the amount is less than s 2 lakhs then you can use IMPS to make fund transfer using IFSC code which gets transferred in a fraction of second from one account to the other account.

(5) No cost for Beneficiary

The fund is transferred from the account of transferor to the beneficiary using IFSC code instantly. While the transferor has to bear very minimal cost of transferring the funds, the system will not add any extra expense to the beneficiary for receiving the funds in his/ her bank account.

(6) Transaction Alert

If you do any financial transaction using IFSC code through RTGS/ NEFT/ IMPS, both the transferor and the beneficiary will receive an SMS alert and email notification for the transaction.

(7) Convenient Banking

With the help of IFSC code which is very necessary for internet banking transaction, banking has become very convenient and easy for the bank customers.

You may be interested in the answer for How to Know IFSC Code by your Account Number?

(8) Necessary for Internet Banking

IFSC code is required for any of the internet banking transactions and without IFSC code, it cannot be possible.

(9) Helpful in Identifying Bank Branch

Through IFSC code, you can identify branches of various banks.

(10) Helps RBI to track and manage online financial transactions

IFSC code is helpful for enabling the RBI to track and manage all the financial transactions being done electronically in the financial and banking system.

As detailed above, there are many benefits of IFSC code in banking system. IFSC code makes banking very comfortable and simple for the customers by saving their time and efforts.

Now you can handle maximum of your banking transactions such as internet banking, fund transfer or many more using IFSC code by sitting at home or your office or anytime, anywhere at your convenience.

Share This : Anupama is a Co-Founder of CodeForBanks.com. She is an MBA (Finance) and Chartered Financial Analyst (CFA). She also carries a Fellowship degree in Life Insurance Sector and is a Master of Computer Application (MCA). She is an expert in Finance Field with an experience of over 18 years on different managerial positions in finance industry including Stock Market, Depository and Mutual Fund Sectors. Apart from that she has remained for few years in the field of marketing as well. Her suggestions and advice for investments have been very useful to many people.
Her vast interest & expertise in the field of finance have encouraged her to write the articles so that others can also get benefitted out of them. She never loses any opportunity to learn and be creative. She is a valuable asset for CodeForBanks.com & important resource to all those around her.