When you are sending money, you want to ensure that your funds reach the intended bank. Transferring funds to the wrong bank can cause multiple problems, the transaction cannot be automatically reversed. You would have to contact your bank, discuss what happened and potentially wait an extended period of time for your money back. If you even get it back, that is. A huge inconvenience.
Sending funds to the wrong bank can be easily done, whether you supply the wrong details for whatever reason (you are asked to supply your bank details when you sign up for your online membership site, for example), or maybe the banker is to blame. The point is, it can easily happen.
This is where the IFSC-code comes into play.
What is an IFSC Code?
IFSC Code, is also known as Indian Financial System Code. An IFSC code consists of 11 characters. Usually, the first 4 characters identify banks name. The fifth character is 0. The last 6 characters identify the branch of the bank. All of the payment processes including RTGS, CFMS and NEFT utilise these codes.
Why is Indian Financial System Code needed?
Traditionally, transferring funds was done off of the internet. Face to face with a banker. You would detail how much money you want to transfer and to what destination bank account. With today’s technology, there has been a massive shift to online transactions and these transactions require codes to be entered and deposited in specific banks.
To make a financial transaction online you no longer need to be face to face with a banker. You just need to know where the code is to be sent and then it can be sent to the correct account.
How does the Indian Financial System Code help?
It is now very easy to enter the codes. These codes carry no meaning on their own. They are just used to identify funds at the point of sale so that it is easy to track and manual verification of the same.
It takes just a few seconds to verifiy now and then by simply using the provided images and urls. It has been designed in such a way that it can easily be updated as news arrives of new breaches of security.
It is also easy to use. You simply input the required information at the point of sale, making no attempt to hide your identity.
Security is an important aspect of any online service and Indian Financial System Code lets you know of any breaches that occur. This is very helpful in real time and allows you to choose the best strategy to eradicate the problem.
Again the Indian Financial System Code is very easy to use and is designed in a way that it can be updated online. Any person not using the provided templates and software for creating codes will find it very easy to use and can create the codes they want using the provided templates.
And, for those who don’t have a very good computer, there are codes to make the same, that way you can use it online and offline.
The Indian Financial System Code allows you to create a set of codes that can be used to track all of your accounts and all of your actions associated with them. The codes can also be used to report problems or to refund the money if it is needed.
Access to your account and the money in your account can be blocked if you want to find out why. You can also change your password and in so doing remove all traces of the hacker who may have managed to hack into your account.