In the era of digital banking, transferring money has become faster and simpler. Whether you’re paying your bills, sending money to family, or making business payments, online fund transfers are a part of everyday life.
One essential detail you need for these transfers is the IFSC Code. Without it, your transaction cannot be processed. This guide will walk you step by step through the process of using IFSC codes for online fund transfers.
What is an IFSC Code?
IFSC (Indian Financial System Code) is an 11-character alphanumeric code assigned by the Reserve Bank of India (RBI) to each bank branch. It ensures that your money reaches the right bank and branch.
Example of an IFSC Code: SBIN0005678
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SBIN → Bank name (State Bank of India)
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0 → Reserved for future use
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005678 → Branch code
Types of Online Fund Transfers that Use IFSC Codes
| Transfer Type | Full Form | Minimum Limit | Maximum Limit | Processing Time | Usage |
|---|---|---|---|---|---|
| NEFT | National Electronic Funds Transfer | ₹1 | No limit (set by bank) | Hourly batches | Everyday transfers |
| RTGS | Real-Time Gross Settlement | ₹2,00,000 | No upper limit | Real-time | High-value transfers |
| IMPS | Immediate Payment Service | ₹1 | ₹5,00,000 | Instant | 24/7 instant payments |
Step-by-Step Guide to Using IFSC Code for Online Fund Transfers
Step 1: Log in to Net Banking or Mobile Banking
Access your bank’s portal or mobile app with your user ID and password.
Step 2: Add a New Beneficiary
Before transferring money, you must add the recipient as a beneficiary.
You will need the following details:
| Required Information | Description |
|---|---|
| Beneficiary Name | Name of the account holder |
| Bank Name | Bank where the account is held |
| Account Number | Beneficiary’s bank account number |
| IFSC Code | Unique branch identifier |
| Branch Location | City or area of the branch (sometimes optional) |
Step 3: Verify Beneficiary Details
Double-check the IFSC code and account number before submitting. Wrong entries may delay or misroute the transaction.
Step 4: Select Transfer Type
Choose between NEFT, RTGS, or IMPS depending on your need.
For example:
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Small daily transfers → NEFT / IMPS
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Instant transfer at any time → IMPS
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High-value transfer (₹2 lakh or above) → RTGS
Step 5: Enter Amount and Confirm Transaction
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Enter the amount you want to transfer.
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Some banks may ask for OTP (One-Time Password) for security.
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Confirm the payment.
Step 6: Transaction Successful
You will receive an SMS or email confirming the transaction details including:
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Transaction ID
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Beneficiary account details
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Amount transferred
Tips for Safe Online Transfers Using IFSC Codes
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Always copy-paste the IFSC code from a reliable source (bank website, RBI website, or cheque book).
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Avoid using outdated IFSC codes – they may change after bank mergers or branch relocations.
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Transfer a small amount first to verify beneficiary details before sending a large sum.
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Save frequently used IFSC codes in your mobile banking app for quicker transactions.