What is an IFSC Code ?

The eleven-digit alphanumeric Indian Financial System Code, or IFSC, is a unique way to identify each bank and each of its branches that takes part in the online fund transfer process. The Reserve Bank of India (RBI) assigns an IFSC Code to each bank branch in order to track online money transfers. Without a valid IFSC, no electronic or online transaction can be started for the transfer of funds via NEFT (National Electronic Fund Transfer), RTGS (Real-time Gross Settlement), or IMPS (Immediate Payment System).

Format of IFSC Code

The bank is represented by the first four characters of an IFSC code. Usually, the bank itself has these qualities. For instance, Punjab National Bank’s IFSC code begins with “PUNB,” which is the initial combination of the bank’s full name. Likewise, HDFC’s IFSC code begins with “HDFC.”
Zero, or the fifth character, is set aside for use in the future.

The corresponding branch is represented by the final six characters of the code. Usually, they are numbers, but depending on the bank, they occasionally can also contain alphabets.

A	B	C	D	0	6	7	8	9	10	11
Bank Code				0		Branch Code

To make the format of an IFSC code easy to understand, let’s now look at an example of a particular IFSC. The State Bank of India branch in Mumbai has the IFSC code SBIN0001234. What we can do with it is the following, using the format mentioned above.

S	B	I	N	0	0	0	1	2	3	4
Bank Code of State Bank of India				0	Branch Code of SBI of Mumbai Branch

In here, SBIN represents the bank name, i.e State Bank of India.

The 5th character is 0, which is for future use

The other 6 characters, 001234 represents the branch of the respective bank, which is Mumbai branch in here

The Top 5 Indian Banks’ IFSC Codes

The list of IFSC codes for one of the branches of the top 5 banks in India is provided below. It should be mentioned that every bank branch in India has a distinct IFSC. As a result, the IFSC cannot be the same in two bank branches.

Bank Name	Branch Name	IFSC Code
STATE BANK OF INDIA	AHMEDABAD , GUJARAT	SBIN0040421
ICICI BANK LIMITED	CHHATTARPUR, Delhi	ICIC0003543
AXIS BANK	GURUGRAM , HARYANA	UTIB0003539
Bank of Baroda	ALIBAG,MAHARASHTRA	BARB0ALIBAG
CANARA BANK	BANGALORE, KARNATAKA	CNRB0000056

The IFSC Code’s importance

The following are the importance and advantages of the Indian Financial System Code (IFSC):
By providing a unique identification for a particular bank branch, the code assists clients in avoiding potential errors when transferring money online through NEFT, RTGS, or IMPS.
The customer can choose to use the IFSC to facilitate an online money transfer in order to avoid having to physically visit the branch for any financial transfers. Thus, it’s a practical and sustainable choice.
With the IFSC, processing all online transactions, including bill payment, is simple and straightforward.
The RBI uses the code to track each individual’s online transactions, removing any possibility of inconsistencies in the fund transfer procedure.

Why is the IFSC Code necessary?

Fund transfers via NEFT, RTGS, IMPS, or UPI can be made easier with the help of IFSC. The code facilitates the smooth tracking and maintenance of all financial transactions made through online payment services for both the RBI and the relevant bank with the IFSC.
In order for the IFSC to identify the beneficiary’s branch and credit the necessary amount, it must make an online payment to another bank. The IFSC assists in the distinct identification of all banks and their corresponding branches, protecting customers from fraudulent activity and facilitating online fund transfers.

How to Use an IFSC Code to Transfer Money

These days, the majority of people choose the simple and hassle-free online method for money transfers. Additionally, it saves you time from having to wait in line to visit the bank. Use the IFSC code to transfer money by following these easy steps.

• Step 1: Register for a net banking account first and foremost. Simply submit an application to the bank to obtain the login information needed to create an account.
• Step 2: Designate the beneficiary of any third-party transactions as the recipient.
• Step 3: Enter the beneficiary’s information, such as their full name, bank account number, and IFSC code; choose an online payment option and hit submit.
• Step 4: You will be given a one-time password to verify your identity in order to conduct secure transactions. Once you enter the same, the transaction is finished.
• Step 5: Depending on the online payment method, the money will be deposited into the recipient’s account.

What is a MICR code?

A nine-digit code called MICR, or Magnetic Ink Character Recognition Code, is used to process checks more quickly. Because each bank branch’s MICR number is distinct, it aids in uniquely identifying the bank and branch taking part in an Electronic Clearing System (ECS). Similar to the IFSC, a MICR code consists of three fundamental parts:

• The city code is shown by the first three digits.
• The specific bank code is represented by the middle three digits.
• The unique branch code is represented by the final three digits.

Where can you find MICR code?
The bottom half of the bank’s check leaf is often where you can find the MICR Code. The code is located directly next to the check number at the bottom of the document in a thin strip. Furthermore, you can look up your bank branch’s MICR Code online or by calling the bank.How does an IFSC differ from a MICR code?

To put it briefly, electronic money transfers between Indian banks are started using the IFSC code. The technology known as the MICR code, on the other hand, uses magnetic ink recognition to speed up and simplify the processing of checks. Additionally, the MICR is a 9-digit numeric code, while the IFSC is an 11-character alphanumeric code.

CIF Number: What Is It?

Every customer has a unique CIF, or customer information file. To represent the file, it is an 11-digit number. CIF is essentially an electronic file, either digital or virtual, that holds all of the account holder’s pertinent banking information. Although a customer may have multiple accounts, they will only have a single CIF number since all of their accounts are connected to it.
The bank decodes the CIF number to obtain all of the customer’s financial and personal data. Details about loans, demat, and other matters are typically included in the information, along with other KYC details like identity, address, and photo ID. In summary, a customer information file is a digital file that holds all of the important banking details of an account holder.