The use of IFSC codes is very common. It is mainly used for electronic funds transfer here in India. It is unique for each branch of every bank and helps identify the bank branches involved in the payment and settlement in the case of Real Time Gross Settlement or RTGS or in National Electronic Fund Transfer or NEFT.
It is a code which has 11 characters. The first four characters are alphabets and represent the bank. The fifth character is zero and it is mainly kept for use in the future. The last six characters can be numeric or alphabets and represent the branch of the bank. The IFSC code of the branch of the bank is printed on the cheque books. The bank IFSC is of utmost importance in RTGS and NEFT. It is a means of sending messages to the destination bank. Reserve Bank of India has a complete and updated list of the Indian Financial System Code of the different branches of the various banks in India. These codes have been given or assigned to the various branches of all the banks by the Reserve Bank of India. This code is mandatory for the electronic payment system application.
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