Things you need to know about IFSC Code
Recently, Finance Minister Nirmala Sitharaman announced the merger of 10 PSB Banks, and the news made existing customers concerned about their account numbers, branch and codes. We all know that when SBI got merged with its five associates, at that time SBI changed the IFSC codes and names of 1,300 branches, for the reason that each and every branch server is different. So, it’s obvious that if the banks merged you may get a new IFSC code.
What is an IFSC Code?
• The Indian Financial System Code (IFSC) is a unique 11 digit alpha- numeric system
• IFSC Code is used to identify all the bank branches that participate in various digital/electronic money transactions like NEFT and RTGS.
Read out the low-down to know why IFSC code will change:
• IFSC codes are unique to every branch of a bank and hence will change when the branch changes.
• IFSC code is mandatory for all banking transactions.
• The first 4 digits of any IFSC code represent your particular bank and rest 6 numbers represents the branch of the bank.
• IFSC code were invented only to identify bank branches for correct transactions
• If the branch changes due to banks merger, then the IFSC code will be replaced with the branch under which the bank accounts are merged and mapped
• Suppose, you want to transfer the money from one account to another bank/branch. Then, the branch will be different, server, code everything will change. This is the reason, IFSC code is meant for making electronic transaction simple.
• This system of code is regulated by RBI for any type of funds transfer into the banking system
Hence, no need to worry, just wait for the finale merger process of all 10 PSB Banks, and you will get your new IFSC code from your branch very soon for trouble-free and effortless banking purpose.
