Things you don't know about IFSC code

IFSC (Indian Financial System Code) is developed to allow you to transfer your money from one bank account to other bank account using online banking, also known as internet banking, facility. Most of the people would be aware of the fact that it is needed to do RTGS and NEFT transactions online.

But there are many things that most of you don't know and you should know about IFSC code. Here are few secrets regarding this bank code -

IFSC Codes are maintained by RBI

Many people think that IFSC codes are maintained by a particular bank about their branches and it is the head office of the bank that assign these codes to the branches. But this wrong since IFSC codes are maintained by RBI (Reserve Bank of India) and it has complete list of all the branches of all the banks that provide online fund transfer facility to their customers. In fact it has also the list of such banks who doesn't yet provide such facility.

IFSC Codes are Unique

Just like every PNR (Passenger Name Record) number of railway passenger is unique so does the IFSC code of every branch in India. This is done intentionally so that money is transferred to one and only branch and there is no misuse of the system.

Wrong IFSC Code means trouble

Double check the code before you hit that submit button on payment/third-party-transfer page on the bank's website. Entering wrong IFSC code can lend you into trouble. Not only you won't be able to send money to the intended beneficiary but also the owner of account to which money is wrongly deposited can sue you in the court. However there are still ways to recover your money as explained in recover money lost due to wrong IFSC code article posted before in this blog.

Can IFSC Code of a bank change

The probability of change of branch codes is very less unless RBI plans to change the codes for enhancing security in online banking transactions. But most times you can be assured that the code would remain same. It is always a good idea to call the branch office or check your bank cheque to make sure that you always enter the correct code to trigger your transactions.

In this article we have mentioned some of the most important things as regards to IFSC codes with each and every bank customer must know to carry our the money transfer with peace, confidence, and without the risk of lending into trouble.

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