Indian Financial System Code is the full form of IFSC contains 11 digit code in alpha-numeric format used by the Reserve Bank of India to identify all the Bank branches for the NEFT (National Electronic Funds Transfer). The IFSC Code of Bank is the unique code for each branch which facilitates inter-bank electronic funds transfer by way of identifying the source and destination banks.
While making the transaction you must confirm and cross verify the IFSC by following the below steps. Here is where you can find the IFSC of your branch.
The 11 digit code varies from branch to branch for all the indian banks. Here is how the code can be decoded...
Lets take an Example of IFSC0000011. The first four digits of the code of the branch are "IFSC" represents the individual bank in this case IFSC is the bank code. More examples include "SBIN" For State bank of India and ICIC for ICICI. It will be unique to the every bank. The last seven digits represent the unique bank code for branch. In this case the unique branch code is last 6 digits i.e "000011"
The fifth digit for every bank branch is by default '0' as it is included as the control character.
It is used for all valid banking transactions. With the help of this code you can receive payments or make transactions virtually. Banks and organizations use the IFSC to conduct National Electronic Funds Transfer (NEFT) and Real-Time Gross Settlement (RTGS) transactions to identify and help in streamlining the transactions between different accounts, bank branches and banks.
With the help of this code of your bank branch. You can make following type of transactions.
Loan Amount is 1210000
No. of Months is 147
Rate of Interest [ROI] is 10.2