Introduction:
With a new generation of internet and online services, people are not very much aware of the bank and its system. Till they need to face the inevitable of visiting a bank, they are alien to its functions it. It has been experienced that people tend to confuse the IFSC Code with the branch code. But the fact of the matter is that they are not the same. They even have a different purpose and are given to the bank branch by different authorities.
Table of Contents
Know IFSC
IFSC code or Indian Financial System Codes are unique codes given by the Reserve Bank of India to all the bank branches. It can be used to identify a particular branch of the bank and is essential for many banking services. Though, every bank branch put up their IFSC for the people to note down, you can easily find it online or on a cheque leaf. The IFSC is specially designed for all the bank branches to avoid any misunderstandings and for ease of work. It is made by 11 characters that have their own significance and can be linked to the branch. These 11 characters have a dedicated purpose to provide proper information about the bank and its branch.
- Bank name is represented by the first four characters of the IFSC.
- The bank branch can be identified by the last six characters.
- The fifth character is considered to be a reference character from a future perspective.
How is IFSC Code Different from Branch Code?
- Significance:IFSC has a different purpose than the branch code and is more essential for getting to know the correct information of the bank branch. Hence, the significance of IFSC is more than the branch code.
- Allotted by Different Authorities:IFSC code is provided by the RBI to the bank branch whereas the branch code is given to the branch by their bank.
- Uses:IFSC is used by millions of people for online transactions and providing their branch details. In the case of using banking services such as RTGS, IMPS, and NEFT IFSC has to play an important role. The branch code is of no use in these services. It is only helpful in the internal functioning of the bank.
Advantages of IFSC Code
- IFSC helps in identifying the correct information about the bank branch.
- It is linked to the data of the branch and even to the account numbers generated by that branch.
- In case of wrongly entered IFSC on any online platform, it will automatically show the error.
- With help of this information, online transactions have become much easier and safer.
- IFSC Code is an important set of information when you are using your account for any kind of transaction. It is even helpful in applying for any personal services such as a home loan or any other loan where you have to provide your account details.
The Bottom Line
IFSC Code and Branch code are not the same. Though, the same branch can have both of the codes for identification. IFSC is a universal code that can be used to identify the bank branch whereas the branch code is used by the banking system internally. The IFSC is specially designed by RBI for every bank branch and the branch code is provided to the bank.