IFSC codes play a pivotal role in lessening the challenges in transferring funds to the beneficiary’s account. IFSC codes, based on city, district and state help in locating banks and its branches across India.

Mentioned below are some of the key benefits pertaining to IFSC Code.

1. Helpful In Internet Banking

Online banking is undoubtedly the easiest and quickest form of banking. Today, transferring and receiving money over the internet has become an inevitable part of one’s life. Many customers prefer online banking to conservative methods of banking for varied reasons; firstly, and, most importantly, it saves time. Secondly, it is safe. For instance, the money transferred through EFT (Electronic Fund Transfer) is safe and secure and reaches the concerned party within 24 to 48 hours.

IFSC code is profoundly significant for online banking. The net banking users are needed to submit certain key facts including the IFSC code of the beneficiary’s bank branch in order to complete the fund transfer transaction smoothly.

2. Quick Transfers

Thanks to the IFSC code provided by banks, we no longer have to stand and wait in the long queues for getting even the smallest transactions processed. With the help of the IFSC code, you can easily complete the transaction from any corner of the world. Quick transfer of money is particularly a relief to those who wish to carry out transactions in emergencies as the IFSC code transaction takes only a couple of minutes to happen.

3. Less Or No Fraud

IFSC code is safe and intensely secured, and all banks have IFSC codes that make transactions secure for all banks. This code is unique to each bank and their branches, which results into less or no cases of fraud such as theft. With IFSC codes, it is very hard and perhaps next to impossible to commit a security breach. You will also find the IFSC code written on the cheques as well.

4. Constant Communication Possible

IFSC code also helps in implementing quick and clear communication between two parties. Because of the use of IFSC code, when there is a credit or debit, a text message or an email is sent to both the account holders from the side of the respective banks of the receiver and giver of money.

5. Helps In Making Payment Transfers Through NEFT And RTGS

NEFT and RTGS both are peculiar systems designed to help individuals to transfer money in a short period of time. For NEFT, there is no minimum and maximum limit to the funds transfer. With RTGS, the transactions are quickly operated and are supposedly one of the fastest modes of transfers. The minimum amount transferred is Rs. 100,000 or more.

For transfers to happen via NEFT and RTGS, you need IFSC codes. Such efficient mediums for transferring money make time consuming factors such as demand drafts and bank cheques redundant.

6. Encourages paperless money transfers

Another impressive thing about IFSC codes is that it makes banking paperless. With the help of IFSC codes, you can do electronic paperless money transfers that encourage environmental friendliness. IFSC codes have just made business transactions simpler and quicker and, of course paperless!

7. Assists Banks For Validation And Reconciliation Purposes

IFSC codes help all banks of India for validation, reconciliation and other purposes. If you remove the IFSC codes, then many banks may be at risk in remitting funds for their customers. If their customers are apprehensive for furnishing branch IFSC then banks must educate and assist the customers in obtaining the IFSC code for carrying out their banking transactions.

Banks find these codes very helpful in sufficing the needs of not only individual customers but even corporate clients including the government agencies who use this system for disbursing payments. Overall, IFSC codes have made banking a lot easier even for banks across the country.

How Can One Find IFSC Code?

You might wonder where to look for IFSC codes? Finding out the IFSC code for different banks isn’t a daunting process. It is very easy to find out the IFSC codes only if you know the name of the bank and the branch.

If you want to know the IFSC code of your own bank then look no beyond than your cheques. Also, you can visit the official website of RBI where you will find a comprehensive list of IFSC codes. Besides there are many other online websites that contain such legitimate information on IFSC codes if you are willing to provide the name of the bank, branch and city where the branch is located. Lastly, you can always give a call to the respective bank or visit that particular branch to enquire for its IFSC code.

Perhaps, the only time when things can go weary with IFSC is, when you fill a wrong IFSC code number. Therefore, while filing the IFSC code number, you have to be very mindful because in case of an error, money may get transferred to somebody else’s bank account.

Author Bio: Deepika Sharma

As a reader latest in the sphere of finance, banking and investment capture my interest. I combine my interest and love for writing to cover financial, banking and money related issues faced by the millennials today. Besides this, I also work for Bankingdb.com , a complete online database that contains list of worldwide banking codes used for
national and international banking transactions.