5 benefits of IFSC everything you need to know
June 28, 2021
While doing a money transfer through NEFT, RTGS or IMPS, you will be required to enter an IFSC. Along with the account number, the 11-digit code ensures your fund is transferred to the specific bank branch. Let’s get to know the benefits of an IFSC in this article.
We all use IMPS, NEFT and RTGS for transferring money from one bank account to another. While using any of the above methods, you are required to enter the account number, amount and IFSC. One cannot proceed with the transfer process, without the use of an IFSC or the Indian Financial System Code. The Reserve Bank of India (RBI) allocates an eleven-digit alphanumeric code to every bank branch. Every branch has a unique IFSC.
Benefits of IFSC:
- No possibility of risk:
With online transfer massively used by people across the world, an IFSC is the one that helps to do a safe transfer of money. Safety is ensured because the IFSC varies for every branch. Therefore, there is no probability of a fraud or theft while transferring money.
- Money transfer in a few clicks:
Gone are the days when you would have to wait in long queues for sending or receiving money. Online fund transfer, with the help of IFSC has made it easier than ever before – it is now quick and convenient. In the event of an emergency, you can just borrow money and the transaction is successful in just a few clicks.
- Quick communication:
Whenever you initiate a fund transfer, the IFSC plays a crucial role in maintaining the communication between the sender and the recipient. If you are making a transaction through NEFT, IMPS or RTGS, you immediately receive an alert on your mobile and e-mail ID from your concerned bank.
- Necessary for Internet Banking:
IFSC, using account number is an essential requirement when you are sending money. Without the Code, it is impossible to transfer money. The IFSC is usually listed on the bank passbook as well as the chequebook. If the recipient is not aware of the IFSC, then it is easy to obtain one from the RBI’s official website. Alternatively, you can get it from your respective bank’s website.
- Helps to track transactions:
The RBI is an apex bank in the country that has allotted a unique code to each bank branch. It helps in the identification of the bank and its branch. With the use of the IFSC, the RBI can manage and track all transactions that are conducted electronically, in the financial and banking system.
These are some of the benefits of an IFSC. For online transactions, the Code has a lot of significance. Hence, it is a mandatory requirement for fund transfers.
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