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Understand all about IFSC Codes in Detail


IFSC stands for Indian Financial System Code. It is an 11-digit numerical code used for the unique identification of different bank branches in India. It is assign to every bank branch in India by the Reserve Bank of India. About 130,000 IFSC codes are currently operating in India that the Reserve Bank of India has assigned to different banks and their branches. All the NEFT (National Electronic Funds Transfer) and other electronic mode transactions require the IFSC Code.

What is IFSC?

IFSC is a special code provided to every bank branch in India. All electronic payment systems like RTGS (Real-time gross settlement), CFMS (Centralised Funds Management System), and NEFT use this code. It is mandatory for the transfer of funds from one bank account to another. Without this code, a financial transaction can’t be made as it specifies the bank branch involve in the transaction. The IFSC Code of every bank branch is unique; no two branches have the same code, even if they are very close in proximity. 

Of the 11 characters, the first four characters in the IFSC code represent the bank, while the last six represent the branch. The fifth character is always zero. To understand it better, let us consider the 11-digit IFSC Code of the State Bank of India (SBI). The first four letters of the SBI IFSC Code are ‘SBIN’, representing the bank. The last six digits indicate a specific branch of the bank. For instance, SBIN0005943 is the SBI IFSC Code of the Himalaya House, New Delhi branch of the State Bank of India. The last six digits, ‘005843’, represent the branch code. 

How does the IFSC Code work?

IFSC code simplifies electronic payments in India to a great extent. All the bank branches that are members of the NPCI (National Payments Corporation of India) or NECS (National Electronic Clearing System) can be identify by this code. The IFSC Code for any bank branch can easily be found through an online search, even if you don’t have a bank account in that bank. The IFSC codes of all bank branches can also be found on the official IFSC website through their IFSC Code finder. In addition, the IFSC Code for your particular bank branch is print on your account passbook. 

Why is the IFSC Code important?

The transfer of funds is indispensable for a healthy economy. It makes paying bills, shopping online, and other things requiring online payments easier and more secure. The question is, how does the financial system ensure that your hard-earn money is directed to the account it is intended for? This is where the IFSC system comes into play. Every financial transaction operating in India, including RTGS, IMPS, NEFT, and CFMS, is regulate by the RBI (Reserve Bank of India). A single IFSC Code helps it track every transaction occurring in the country. This eliminates the possibility of errors and mistakes when transferring money from one bank account to another. While sending money to a bank account through an online payment gateway, you need the IFSC Code of the bank branch you are sending the money to. This ensures that it goes to the right place.


The IFSC Code facilitates safe and secure electronic financial transactions in India. Every SBI bank branch has a unique SBI IFSC Code, so it ensures that your money reaches the right bank account when you transfer funds online. IFSC codes are integral to a safe and secure online banking system in India. The use of these codes ensures that the funds you transfer online reach the intended bank account. We hope this blog clears all your doubts about the IFSC Code and how it helps in online transactions. For more information, you check our other blogs on the topics.