Does the name of the account holder matter if IFSC code and account number are entered correctly?
In case someone enters an incorrect IFSC while making an online transfer, the funds are credited back to the sender's bank account.
If you have a bank account, you must have seen an IFSC reference on the passbook. The unique code forms an essential part of the Indian banking infrastructure. Let us find out more about this unique code.
What is IFSC?
The Indian Financial System Code (IFSC) is an 11-character alphanumerical code that is used by banks to identify the branches where people have their bank accounts. Every bank branch has a unique IFSC and no two branches (even of the same bank) will ever have the same code. In an IFSC, the first four digits tell the name of the bank and the last six characters are numbers representing the branch. The fifth character is zero. The IFSC is assigned by the Reserve Bank of India (RBI).
Purpose of IFSC The IFSC is used by electronic payment system applications such as Unified Payment Interfaces (UPI). It is used only to transfer or send funds within India. It is mandatory when transferring money from one bank account to another. Without the IFSC, you cannot make online transfers. The IFSC ensures that the money being transferred reaches the right destination bank without any mishap during the transaction process. It also helps the RBI keep track of all digital banking transactions.
Where to find the IFSC?
The IFSC of a bank's branch can be found in the cheque book. Besides, it can be found on the first page of the passbook. Another simple way to find out the IFSC is to refer to the official website of the RBI or the bank's website.