The IFSC code is used in online banking systems such as NEFT, IMPS, and RTGS.
New Delhi: The popularity of online banking has risen in recent years. People transfer money from one account to another using the internet. This will necessitate the use of an IFSC code. Have you ever wondered what would happen if you entered the wrong IFSC code when making an online money transfer? Let’s find out.
What is IFSC Code?
Indian Financial System Code is the complete version of the IFSC Code. RBI has assigned this 11-digit alpha-numeric code (Reserve Bank of India). Every bank’s branch is assigned its own IFSC code, hence each branch has its own IFSC Code.
The IFSC code is used in online banking systems such as NEFT, IMPS, and RTGS. We can’t do internet banking or fund transfers without a valid IFSC. The bank is represented by the first four digits of this 11-digit number. The following digit is 0, which is held in reserve for later use. Following that, the branch’s last six digits are determined.
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Transaction gets done
A single blunder in an online transaction might derail everything. As a result, extreme caution should be exercised when entering the IFSC code during the transaction. For example, if your account is with SBI Bank in Delhi, but you provided the IFSC number of SBI Bank in Noida while transferring money online, the transaction will go through and your money will be withdrawn. Your money will flow to someone else’s account even if the letter of the code is changed but the account number or other details are correct because banks primarily look at the account number.
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What happens if you enter the IFSC code of another bank?
If the IFSC code is typed incorrectly, for example, PNB Ghaziabad instead of SBI Ghaziabad, your money may be moved to the wrong account. This is only feasible if any PNB client has the same account number as the one you supplied in SBI. It is less probable that your transaction will be cancelled if such matching does not occur.
