What is the IFSC code?

IFSC stands for the Indian Financial System Code. The purpose of this code is to pinpoint the branch and bank by which an account is held. Note, usually an IFSC code is around eleven characters. The IFSC code is used by NEFT (National Electronic Funds Transfer) and RTGS (Real Time Gross Settlement) transfer systems.

How can I find the IFSC code for a bank's branch?

www.theIFSCcode.com has made finding IFSC codes as effortless as possible. Usually the fastest way to find the code is by selecting the bank name from this list, or by searching for the particular branch name is the search box above and then you will have the option to filter the list of bank branches by state, city, and/or district. If you already have the IFSC code and you want to validate it, you can type it directly in the search box. Finally, you can search by selecting the state where the bank branch resides and navigate to the particular branch by bank name, city and then branch.

What does NEFT mean?

NEFT (National Electronic Funds Transfer) means that clients or corporations are able to transfer funds from one bank branch to another electronically at different regions across the country. The transfer of funds is considered to be like e-checks because they will be settled in batches and a service provider will transfer the monies to the other bank's account. The funds are not transferred in real-time. The IFSC code is required to perform NEFT transactions.

Who can transfer electronic funds using NEFT?

Any individuals or corporations holding an account with a bank branch may transfer/receive funds using NEFT. There can be cash deposits for walk-in customers at branches participating in NEFT services, but there is a restriction as to maximum deposit amounts per transaction.

Is there a benefit of using National Electronic Funds Transfer?

NEFT eliminates any delays in fund movements in a secure manner, as transfers must be settled within a 24 hour time frame. No physical check or demand drafts are needed, nor is depositing of documents by bank visit. Credit confirmation of transactions is sent via text message (SMS) or email. The entire process is paperless making it very environmentally friendly and is a safe cost-effective way to simply transfer money online.

What are the charges for NEFT transactions?

Funds to account holders at destination bank branches are free, no charges will be collected. Outgoing transactions, such as from a bank branch account holder to another individual or corporation has the following charges:
  • Transactions up to Rs 10,000: maximum Rs 2.50 + Service Tax.
  • Transactions above Rs 10,000 and up to Rs 1 lakh: maximum Rs 5 + Service Tax.
  • Transactions above Rs 1 lakh and up to Rs 2 lakhs: maximum Rs 15 + Service Tax.
  • Transactions above Rs 2 lakhs: maximum Rs 25 + Service Tax.

What times do NEFT transfers take place?

National Electronic Fund Transfers run in hourly batches. From Monday to Friday there are twelve settlements (8am - 7pm). On Saturdays there are six settlements (8am - 1pm).

What does RTGS mean?

RTGS stands for Real Time Gross Settlement. This process is where money transfers can take place on a "gross settlement" on "real time". "Real time" means that all processing for the transfer of funds occur the same time that they are received. "Gross settlement" means that the settlement of funds occurs individually. All transactions using RTGS are settled as they are processed and all payments are final. There is no physical exchange of money when using RTGS. When a transaction is made, withdrawal of funds from one bank will be reduced and the bank by which the fund is to be deposited will increase. RTGS is used for high-value transactions to lower settlement risk. You need the IFSC code to identify the branch you will want to transfer funds using RTGS. Not all branches have IFSC codes.

How is RTGS different from NEFT?

RTGS transactions are settled individually, whereas NEFT settlements are handled in batches. NEFT uses a Deferred Net Settlement (DNS) which means settlements takes place only when payables and receivables are netted by a particular cut-off time.

What is the advantage of RTGS?

Credit and fluidity of an RTGS transfer are due to the "real time" processing. There is little to no risk involved. There is flexible movement of funds that take barely any wait time.

What times does RTGS fund transfer run?

The RTGS is available Monday through Saturday. The service window for customers on week days is from 9-16 hours and from 9-13 hours on Saturday. Timings for banks may vary depending on the customer timings of the bank branches. Not all bank branch hours is reflective of the hours stated above.

Is there a limit to RTGS transactions?

The minimum amount that can be transferred using RTGS is Rs 2 lakhs and there is no maximum limit. Keep in mind RTGS is usually a service for low-volume, high-value transactions. Much like NEFT, there are no charges for receiving funds. However, for sending funds the fees are as follows:
  • Transactions from Rs 2 up to 5 lakhs: maximum of Rs 30 per transaction.
  • Transactions above Rs 5 lakhs: maximum of Rs 55 per transaction.