The Indian Financial System Code (IFSC) is 11 character unique combinations of alphabets and numbers and is used to identify a bank branch. The four characters in the IFSC code gives the name of the bank. The fifth character is always a zero for all banks IFSC codes. The last six characters will give the exact location of the bank.
An IFSC code is required for making electronic funds transfer in the country through Real-time gross settlement systems (RTGS) and national electronic fund transfer (NEFT).
What is NEFT? It is the most used way of transferring money electronically in India. It started in November 2005. You can add a beneficiary account through online banking and transfer the money to that beneficiary online. The money won’t be transferred instantly. It will be executed in hourly batches after a time lag. There are 12 hourly settlements between 8 am to 7 pm on all weekdays and till 1 pm on Saturdays. Rs 5 per transaction is charged if the transaction amount is less than Rs 1 lakh and Rs 25 is charged per transaction if the transaction amount is more than Rs 1 lakh.
What is RTGS? Real-time gross settlement as the name suggests fund transfer happen on real-time basis that is instantly. There is no waiting. The amount has to be credited to beneficiaries account within 30 minutes. It is meant for large value transactions the minimum amount to be remitted through RTGS is Rs 2 lakh. There is no upper ceiling for RTGS. This service is available from 9 am to 4.30 pm on weekdays and 9 am to 2 pm on weekends.
What is MICR code? As with the Magnetic Ink Character Recognition is a character recognition technology that helps in the processing of cheque. Every bank branch has a unique MICR code and this helps RBI to clear cheques and speed up the cheque clearing process. You can find HDFC Bank’s MICR codes printed on the bottom of your bank’s cheque leaves.
How to search for SBI’s IFSC Code and MICR code You can get the SBI Bank’s IFSC code online through Paisabazaar.com. There is IFSC code locator in the tools section. You can select the various options and Select HDFC Bank, the state in which the branch is located, city and the branch name. It will automatically give you the IFSC code and MICR code of that particular branch along with full address.
About Sbi Bank
The biggest public sector bank of India was established under a parliament act in July 1955. In 1959 State Bank of India (Subsidiary Banks) Act was passed, enabling SBI to take over eight former state-associated banks and its subsidiaries. It is headquartered in Mumbai, Maharashtra.
