The net banking facilities allow the bank customers to transfer money online from any nook & corner of the world through a Computer with Internet connection. It was not same few years back when individuals were forced to visit their bank branch in person, stand and wait in a queue for their turns to come, fill up the details, and deposit the funds for making Demand Drafts/Account Payee Drafts for making payments. The other option was signing the cheques for the payments, and waiting for its clearance. The old money transfer process was unusually lengthy and time-consuming, and also a waste of valuable business hours.
Full Form of IFSC Code
Now-a-days, the banks have their own IFSC Code, and in its full form it is known as "The Indian Financial System Code (IFSC)". The code is provided by Reserve Bank of India to each bank to use for RTGS, NEFT and Centralised Funds Management System (CFMS), important systems to receive or send payments.
IFSC Code Definition
The Indian Financial System Code is 11 digit serial unique characters to identify bank's branch. The digits are a combination of alpha-numeric characters, where the starting 4 figures, identify the bank branch and are in alphabets, the last 6 numbers in the series are numeric, or alphanumeric in order, signifying the bank's code and the fifth digit in the middle is a bank's future use number (0) Zero. The banks mostly print these unique characters on the Cheque book leaves.
Who Uses IFSC Codes
Any individual, corporate, companies, business and trading centres in India, with or no account in the bank can send payments through NEFT and RTGS systems by using bank branch's unique numbers. Reserve Bank of India (RBI) has also directed all banks to provide these unique characters to their customers to facilitate fund transfers. RBI also changes the banks codes time to time and regulates them. NEFT payment transfer system is only applicable in India and not allowed for foreign money transactions or transfers.
The net banking customers can find IFSC Code of the destination bank through bank cheque book leaves, bank branch's customer care service and online sites, but they must get the confirmation from the concerned bank branch before using unique numbers obtained from the online site.