What is IFSC Code

Posted in: Banking | on: July 4, 2011


IFSC Code brief explanation

IFSC Code refers to Indian Financial System Code, which is an eleven-character code assigned by RBI to identify every bank branches uniquely, that are participating in NEFT system in India. This code is used by electronic payment system applications such as RTGS, NEFT and CFMS.

The code is of 11 characters. The first part is the first four alphabet characters representing the Bank. Next character is 0(zero), which is reserved for future use. The last six characters are the branch code. To know what is IFSC Code deeply, go through the article fully. Otherwise, if you need IFSC Code of any branch, just follow the instructions below.

How to find IFSC code?

Normally, this 11-digit code will be printed on cheque book for NEFT enabled banks. Also, you can find bank IFSC code, bank details, branch address for all banks in India. By using the below 4 steps, you can easily find this code and branch location.

IFSC Code < Click Here

1. Select your Bank (eg : State Bank of India)

2. Select your State

3. Select your District

4. Select your Branch name – Now you can find IFSC Code, MICR Code, Address and Contact phone number of your bank branch.

Reserve Bank of India (RBI)

RBI is the central banking institution of India which controls Indian rupee and all banks. It controls inter-bank money transfer all over the banks in India through RTGS and NEFT. It was established in April 1, 1935 and nationalized in 1949. Reserve Bank of India is fully owned by government of India.

Functions of RBI

1. Authority in monetary

RBI monitors and implements the monetary policy which maintains price stability in productive sectors.

2. Maintain financial system

It manages country’s financial and banking system which provides cost-effective banking solutions to customers.

3. Foreign exchange management

Reserve Bank of India facilitates to maintain foreign exchange and trade FOREX (Foreign Exchange) market in India.

4. Currency issuer

Reserve Bank of India issues / exchanges / destroys currency notes and coins in India.

5. Role of development

RBI operates a wide range of development functions to achieve national goals.

6. Other functions

RBI maintains all merchant banking accounts for state and central banks.

RTGS (Real Time Gross Settlement) brief explanation

RTGS (Real Time Gross Settlement) is a fund transfer system used to transfer money from one bank to another. This gross basis transfer is a real time transfer system. This system can perform a large value of transaction and the minimum amount that can be transferred is Rs.2,00,000. There is no maximum amount limit for this transaction.

Time taken for transferring funds

The time taken for receiving funds to beneficiary account is real time when the remitting bank transfers funds. The remitting customer can receive acknowledgment from RBI,once the funds are transferred.

RTGS process

Normally, RBI allows to use four flow structure (V, Y, L, T) in fund transfer. In RTGS system, RBI decided to use Y shaped flow structure. The following flows of instructions are used in this structure.

1. The remitting bank will send payment instruction to central processor's technical operator.

2. The central processor acknowledge stripping of message and will send original message with set of instructions (the amount to be transferred, IFSC code of the branch, issuing and receiving bank’s identification etc.) to central bank.

3. The central bank processes debit of remitting bank’s account and credits to beneficiary bank’s account. Once the transaction is completed, it will send confirmation to central processor.

4. The central processor after re-constructing the payment message with stripped information (beneficiary details) will send the message to receiving bank with proper details.

RTGS processing/service charges

Transaction Charges
Inward transactions Free, no charges
Outward transactions


a] 2 lakhs to 5 lakhs

b] Above 5 lakhs



Not exceeding Rs.25

Not exceeding Rs.50

Benefits of RTGS

Real time fund transfer

All transactions are processed and settled in real time basis.

Credit risk eliminated

There is no credit and liquidity risks in RTGS payment system. The beneficiary bank customer can receive payment instantly once the central bank system accepted the request.

Efficiency of economy

Without exposing settlement risk, the payments are quickly and securely ensured in financial market transactions and major business solution.

RTGS coverage

The RTGS payment system was launched on 26thMarch 2004 by RBI with only four banks involved in. Presently, it covers 109 banks in 13,750 branches and 508 clearing centers. More than 800 cities/towns are covered for customer transaction.

NEFT (National Electronic Fund Transfer) brief explanation

NEFT (National Electronic Fund Transfer) is an online National-wide fund transfer system supported by RBI. It is used by an individual, firm and corporate to transfer payment electronically. NEFT is used to transfer small and medium amount between banks and accounts. There is no minimum amount limit for NEFT.

Time taken for transferring funds

In NEFT process, funds are transferredon hourly batches. In week days, there are 11 settlements (starts at 9 A.M and ends at 7 P.M) and on Saturdays, there are 5 settlements (starts at 9 A.M ends at 1 P.M). Normally, the payment will be sent to the RBI within 3 hours,once the remitting account is given request for transaction. The actual time taken for complete transactiondepends upon the beneficiary bank to process the funds.

NEFT process

In this payment system process, payment transfer from remitting account to beneficiary account involves5 levels of operations. They are,

Level 1:

If anyone (corporate, firm or individual) likes to transfer their funds from their remitting account to beneficiary account through NEFT payment system, they need to fill the form with beneficiary account details (beneficiary account holder name, account number,IFSC code of the branch, maximum amount to transfer and account type). This application form can be available in all banking branches. There are also facilities available for customers to transfer their funds through online by using internet banking and mobile banking. Some banks offer to use NEFT transfer by using their ATMs. The remitting customer is authorized to transfer specified amount to beneficiary account.

Level 2:

The remitting bank branch prepares a payment transfer message and sends it to NEFT service centre.

Level 3:

NEFT Service Centre forwards the message to NEFT clearing centre (controlled by RBI) with details of next batch available to transfer payment.

Level 4:

The NEFT clearing centre then sorts all fund transfer requests as beneficiary bank-wise and then creates payment entries to debit funds from remitting banks and credits payments to beneficiary banks. Also, NEFT service centre sends response messages to destination, bank-wise.

Level 5:

The acceptance message receives destination banks from NEFT clearing centre and transfers credit to beneficiary account.

NEFT processing/service charges

From March 31, 2011 RBI refrain from insisting the processing/service charges to member banks. So, member banks who are participating in NEFT fund transfer need not pay any charges to RBI. The following charges are rationalized under RBI.

Beneficiary bank’s inward transaction:

No need to pay any charges from beneficiaries for payment transfer to destination accounts.

Beneficiary bank’s outward transaction:

Transaction Charges (+service tax)
Below Rs.1 lakh Rs.5
Rs.1 lakh and up to Rs.2 lakhs Rs.15
Above 2lakhs Rs.25

Payment transfer from India to Nepal:

Transaction Charges (+service tax)
Remitting banks from India Upto Rs.5
SBI (if beneficiary account maintained with Nepal SBI Ltd. (NSBL) Upto Rs.20
SBI (if shares this same fund with NSBL) No charges
Beneficiary branch not maintained account with NSBL Rs.50 (transfer up to Rs.5000)


Rs.75 (transfer above Rs.5000)

Benefits of NEFT:


The total process of NEFT is eco-friendly and drastically reduces paperwork.

Secure and efficient:

This system performs seamless transfer of funds from one bank to another. During the transaction, there are no chances for mistakes and the whole operation is said to be quick and highly secure.

Economic efficiency:

NEFT fund transfer service charge is much less when compared to pay order or demand draft.

Risk free transfer:

There are no credit and liquidity risks in NEFT payment system. The fund transfer request is processed and settled in daytime.


When compared to RTGS and NEFT, RTGS payment transfer system is based on gross settlement and NEFT payment transfer system is based on net settlement. Gross settlement is known for transaction held without bouncing other transaction on one-to-one basis. Net settlement is known for transaction completed in specific time of batches.

Basically, RTGS fund transfer is used for large amount of transaction and the minimum amount can be 2 lakhs.NEFT system allows to transfer small amount of funds and there is no minimum value.

Reading What is MICR Code, What is SWIFT Code and What is IBAN number… will make more understanding.


2 + 4 =

Deepanshu saini - Nov 21, 2017

Thanks for information

Srinivas - Nov 20, 2017

Valuable information, thank you.

DHIRAJ - Jun 24, 2014

Gime me details of MICR Code, SWIFT Code and IBAN number also provide me procedure to transfer amount under NEFT

Prashant Patel - Jun 9, 2014

Excellent Explanation of the System. Keep up the Good Work.

Dhananjay Kumar - Jun 17, 2013


Kumar - May 28, 2013

It's really informative, Good to know. Thank you so much.

paresh n sheth - May 26, 2013

Good Information

Raghu Jupally - May 1, 2013

This information is very useful in online baking trasactions and to know Banks functionalities

Mitul( AdityaBirla) - Apr 18, 2013

Above information is Helpfull for everyone who engaged in daily Bank transcation and e-payment.

j. s. jaswal - Feb 1, 2013

good information

j. s. jaswal - Feb 1, 2013

article gave good information about funds transfer.

dr.sudheer - Jan 21, 2013

good information.....

Mandave C.M. - Jan 4, 2013

Very nice .It gives best knowledge about IFSC/ RTGS/NEFT.

prvin deshmukh - Jan 2, 2013

nice information

Prasanna Venkatesan.G - Dec 31, 2012

It is very useful information every individual should know about Bank Transaction, how is easy to use their accounts and maintain their Bank dealing and transactions

suhas - Dec 21, 2012

Great information & very easily understandable

Pramod kumar rajak - Dec 20, 2012

Very useful RTGS & NEFT Excellent working thanks RTGS & NEFT Pramod kumar rajak

soundar comuter teacher - Nov 27, 2012

very easy focused details of fund transfer systems.

P.KUMARESAN - Nov 24, 2012


sumit goyal - Aug 8, 2012

very nice article and gives good knowledge about RTGS

Ahrohi Khanna - Aug 2, 2012

Useful information. Thank You. :)

Manjunath.K.R - Jun 30, 2012

Thanks. Good Information.

suresh kumar - May 1, 2012

I t is very useful information, thank you

VINEETA SINGH - Apr 26, 2012

It's really nice.

Sandeep Khemot - Apr 17, 2012

This is most useful information to all of them who is using net banking, specially who is tring first time. Regards, Sandeep Khemot

Sandeep Khemot - Apr 17, 2012


MAYANK RATURI - Feb 26, 2012


vivek mishra - Feb 17, 2012

a very nice and great article.thnks....

Sumit kumar banchhor - Feb 7, 2012

Very nice and brief information, but are the transaction charges updated.

santosh - Feb 3, 2012

Very helpfull .......Thank you :)

Kusuma voluntary service and educational society - Jan 24, 2012

ifs code is very useful to non profit org my no 300433930 this is USA unique no for society

Santhosh - Dec 27, 2011

While making rtgs if any mistake occurred in writing are typing acc num then what will happened

Mohammadsuhel - Dec 12, 2011

Great information & very easily understandable.

raje - Dec 9, 2011

good information given about electronic payment

sayna - Dec 3, 2011

any type of job

Pankaj - Nov 29, 2011

Is IFSC code allways be 11 digit ? Please help.

S. Kumaravelan - Nov 22, 2011

Great! Thanks for the info...

Anil K Mishra - Nov 19, 2011

a lot of basic information for the people not in banking field.

Vilas Chavan - Nov 14, 2011

valuable article

Amit Sharma - Nov 11, 2011

Really good information about RTGS and NEFT. Thanks

subrata chatterjee - Nov 9, 2011


channesh - Nov 2, 2011

superb information.

Zaiya - Oct 17, 2011

No question this is the place to get this info, thnaks y'all.

Yadvendra Yadav - Oct 14, 2011

SBI Bank Worker is Very Good Worker

Yadvendra Yadav - Oct 14, 2011

Sbi Bank as Very Easily Bank But Very Honnest

PRAMODH - Oct 11, 2011


Babu - Oct 4, 2011

It really informative.....


Excellent information about bank

subbu - Sep 9, 2011