If you are a business or individual in today’s world who is financially active, then it is likely that you have heard of IFSC code. The full form of IFSC code is Indian Financial System Code and is the identifier of the bank and the branch.
Getting the IFSC right is critical when it comes to carrying out online transactions.
Role of IFSC in banking
As a business in today’s economy, you need to be able to facilitate quick payments and offer options for people to pay your business online. The first step in that is to have an online banking option which will enable you to transact as required. If you are new to the world of online banking, then it is essential for you to learn about the options you have for money transfer.
If you want to transfer money from your bank account to another bank account, you have to choose the method that you will use. These include, National Electronic Funds Transfer (NEFT), Real-Time Gross Settlements (RTGS), Immediate Payment Service (IMPS), or United Payment Interfaces (UPI).
The next step in the banking transaction is to collect the banking information of the business you are making payment to. This includes the bank name, bank account number, the name of the account holder, and the IFSC code.
Where to find the IFSC code?
In your business dealings, you may come across instances where one of the parties may not have the IFSC code. Here are some quick tips to help you find the IFSC code.
- IFSC code is clearly given in the chequebook
- It can also be found in bank passbook
- You can also look for the IFSC code in your online banking account
- Do an internet search of the IFSC code by using the bank name and branch
- Call the bank customer service and seek their help
What does the IFSC code consist of?
Each bank branch in our country has a unique IFSC code. The first four letters of the 11-digit code are alphabets and indicate the name of the bank. These four letters remain the same for all branches of a particular bank. The fifth digit is zero (0), and the last six digits represent the branch of the bank, and in most cases these are numbers.
Getting the IFSC code right is important to ensure that the transaction goes through as intended and the money transfer happens to the right party. Make sure to check the IFSC code before starting the transfer process or while sharing it with other parties to get payments into your account.
Online banking and IFSC code are inextricably linked together and you should be well-versed on the importance of the same. At EnKash, we help businesses like yours take the smart banking route and enable quicker expense payables and collections. Along with our smart spend management solutions, we also offer a collateral-free credit limit to our customers to enable them to manage their business finances better.