The Indian Financial System Code or IFSC as it is widely known is used when transferring funds from your bank account to another bank account through netbanking. The IFSC code is basically a 11-digit number that consists of both alphabets and numerals.
The code essentially acts as an identifier of the bank branch. Therefore, none of the electronic fund transfers such as NEFT, RTGS, or IMPS can be initiated without knowing what the correct IFSC of the destination bank account is. You can find the IFSC code along with the MICR code on your bank’s passbook or on your cheque leaf. Alternatively, you can also find it online as well.
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To improve the operational efficiency of Public Sector Banks (PSBs), consolidate their assets, and reduce Non-Performing Assets, the Indian government recently amalgamated multiple PSBs. Here’s a quick look at the various banks that were merged by the government.
|List of banks that were merged
|Bank of Baroda
|Union Bank of India
|Oriental Bank of Commerce
|Punjab National Bank
|United Bank of India
Now, with this recent amalgamation of multiple Public Sector Banks (PSBs) by the government of India, the IFSC code and the MICR code has undergone a complete change. The IFSC that were being used for transferring to the accounts held in these merged banks are no longer in use.
The IFSC code for the accounts held in the above-mentioned merged banks have now changed to reflect the parent bank. And so, before transferring funds to any of the banks that have recently been merged, you would have to first change the IFSC in order for the transaction to go through successfully. Here’s a quick overview of the things that you should do.
Firstly, log into your netbanking account and delete all of the beneficiaries whose accounts are with the aforementioned list of merged banks. Once you’ve done that, add the beneficiaries once again by entering the account details along with the new IFSC codes. After you’ve successfully added the beneficiaries, you can then transfer funds to those accounts.
In addition to modifying the beneficiaries through your netbanking account, you will also have to re-examine all of your standing instructions, ACH mandates, and scheduled payments as well. To ensure that you don’t miss out on anything, it is a good idea to delete these instructions and mandates and add them once again. Failing to modify them can lead to your payments being rejected.
While most netbanking portals have an IFSC code finder at the time of adding a beneficiary, a few don’t. In such cases, make sure that you find the right IFSC manually before adding a new payee. This will ensure that your transaction is successfully executed without any hitch.