What is IFSC and how does it work?
The Indian Financial System Code (IFSC) is an 11-digit code that uniquely identifies a bank branch participating in the two main payment systems in India: the Real Time Gross Settlement (RTGS) and the National Electronic Funds Transfer (NEFT) systems. The first four characters of the IFSC code identify the bank, while the last six characters identify the specific branch of that bank.
In order to send or receive money via RTGS or NEFT, you will need to provide the sender/receiver with your bank account number and IFSC code. The IFSC code ensures that the transaction is routed to the correct bank branch and that your money ends up in (or comes out of) the right account.
How does IFSC work?
The Reserve Bank of India (RBI) allows an IFSC code to every bank branch that offers NEFT or RTGS services. This code helps to identify each bank branch across India, making it easier for customers to transfer funds between accounts at different banks quickly and securely.
When you want to send money via NEFT or RTGS, you will need to provide your own account number as well as the account number and IFSC code of the person or business you are sending money to. The same is true if someone wants to send money to your account – they will need your account number and IFSC code in order for their transaction to be processed correctly.
You can find your own account number and IFSC code on your checkbook leaves or passbook, or by contacting your bank directly. The recipient’s account number and IFSC can usually be found on their bank statement.
How to use IFSC to open a savings account.
The first step is to find a bank that offers the facility of opening a savings account with IFSC. You can either visit the branch in person or go through the bank’s website. Once you have found the right bank, the next step is to fill out the application form. The form will ask for your personal details as well as your IFSC code.
The second step is to submit the duly filled application form along with the required documents to the bank branch. The documents required may vary from bank to bank, but generally, they would require KYC documents like your PAN card, Aadhar card, address proof, and identity proof.
Once your application is processed, you will be given a passbook and an account number. The next time you visit the branch, you can use these credentials to transact using your savings account with IFSC.
The documents you need to open a savings account with IFSC.
The documents required to open a savings account with IFSC may vary from bank to bank, but generally, they would require KYC documents like your PAN card, Aadhar card, address proof, and identity proof.
FAQs about opening a savings account with IFSC.
No, you cannot open a savings account with IFSC if you do not have a PAN card.
What is the minimum balance required to open a savings account with IFSC?
The minimum balance required to open a savings account with IFSC is Rs. 500.
What are the charges for opening a savings account with IFSC?
There are no charges for opening a savings account with IFSC.
A savings account is a great way to grow your money and save for your future. IFSC makes it easy to open a savings account and get started on your financial journey. With just a few simple steps, you can open a savings account with IFSC and start reaping the benefits. So what are you waiting for? Start saving today!