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What are IFSC codes and what are their uses?
Indian Financial System Code or IFSC code is a unique alphanumeric 11-digit number that is required during the e-transfer of money for IMPS, NEFT, and RTGS transactions.
This code is assigned to each bank branch by RBI. Most internet banking transactions are not valid without an IFSC code.
While the first 4 characters of the IFSC code are alphabets and represent the bank, the fifth character is usually zero (0) followed by a mix of numbers and alphabets that represent the bank branch.
IFSC Codes have the following uses:
- Money transfer: An IFSC code is mandatory for electronic payments – NEFT, RTGS, and IMPS.
- Identification: Since IFSC codes are unique, identification of banks and their respective branches can be done. You can read about KYC producers for merchant onboarding here.
- Elimination of errors: This unique number helps in eliminating any error during the e-fund transfer.
While transferring money to another bank account, correct IFSC code along with the other details like account number, account holder name at the bank helps in ensuring that the money will be credited to the right bank account.
Often, the IFSC code of a beneficiary account might change due to bank merger, relocation of bank branches or due to any other factor. Recently with the merger of PSU banks the IFSC of accounts changed.
Introducing IFSC Verification – feature as part of Cashfree Verification Suite.
The IFSC verification API enables businesses to verify whether the entered IFSC is valid, and returns the following:
- Bank Name
- Branch Name
- [Bonus] Supported Modes of transfer (IMPS, NEFT, and RTGS)
What is unique about Cashfree IFSC Verification?
Using Cashfree IFSC Verification API you get access to the most exhaustive bank IFSC database updated weekly. This means you will always get the most updated result for your IFSC query.
Available for all Cashfree merchants for free.
IFSC Verification feature is a part of Cashfree Verification Suite. All Cashfree merchants can use the API for free at no cost. For other features – Bank Account Verification and UPI ID Verification, check the pricing here.
More about Cashfree Verification Suite
We launched Bank Account Verification in 2019. Since then it has been adopted by various businesses for their unique business use cases. While Zomoto uses Bank Account Verification for driver-partner onboarding KYC, Bookmyforex the foreign currency exchange platform uses it to verify beneficiary account accounts before making payouts.
Bank Account Verification
Verify if a bank account exists, match the name provided by the beneficiary with the name at the bank and minimize the failed or transfer reversals. Know the accurate reason for verification failure.
UPI ID Verification
Enter UPI ID and know if it exists. You will receive a customer name at the bank in the response for valid UPIs. [ Link with Cashfree Payouts]
Activate the verification suite and use it with Cashfree Payouts to ensure accurate payouts every time.
The most exhaustive list of IFSC codes updated weekly. Verify whether the IFSC is valid, the bank name and the bank branch that it belongs to. [View API documentation]
Know the transfer modes supported – NEFT, IMPS, RTGS and choose the payout method accordingly.
To activate IFSC Verification for your account, fill this form.