Nowadays, Government of India announced zero balance account for the people who are unbanked. This make the middle class people to learn and use banks for their fund transactions. RBI is the central bank in India controlling and monitoring all the banks and their branches activities in India.
For monitoring purpose, Reserve Bank of India has allocated unique 11 digit alphanumeric code for all the branches. By using this code we can find bank and its address.
As I mentioned earlier, bank IFSC code are the 11 digit code first four digit represents bank name and 5th digit is zero (0) and last 6 digits is branch code. This branch code will be differ for all the branches of particular bank. I will demonstrate you with an example:
This is IFSC code of Karur Vysya Bank in Panaji goa. First Four digits “KVBL” represents bank name “Karur Vysya Bank”. This is common code for all the Karur Vysya Bank branches in India. 5th character is Zero (0). Last 6 digits “002401” is the branch code for Panaji.
Where it Used?
RBI used IFSC code for monitoring and analysis fund transfer of particular branch. Moreover it also used in bank auditing. For customers (Account holders), IFSC code is used in electronic fund transfer. There are four different types of Electronic fund transfer
- Real Time Gross Settlement
- National Electronic fund transfer
- Immediate Payment Service System
- Centralized funds management system
Where to Find?
There are different methods to find branch IFSC code. IFSC code is printed cheque book, Passbook. You can also find IFSC code for all the banks through web. You can find more details in official website of appropriate bank.