GK
BANKING AWARENESS AND SEBI
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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It has 11 digits alpha numeric
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Indian Financial System Code
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First 4 digits represent Bank Name
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All the above
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Detailed explanation-1: -Indian Financial System Code, abbreviated as IFSC, is defined as a 11-digit alphanumeric code that acts as a unique identity for a specific bank branch. Yes. IFSC code is printed on all cheques issued by banks and this code helps in the identification of bank branches and clearing of cheques in an error-free manner.
Detailed explanation-2: -IFSC stands for Indian Financial System Code. The Reserve Bank of India (RBI) utilises the IFSC code for electronic money transfers between banks, as it helps them verify the transfer of resources. No National Electronic Funds Transfer (NEFT) transactions can take place without the IFSC code.
Detailed explanation-3: -The starting 4 digits of the IFSC signify the bank’s name, followed by a 0 (the 5th digit) and the last 6 digits stand for the branch of a bank. You can also find the IFSC code on the top of a cheque leaf near the bank account number.
Detailed explanation-4: -IFSC code is used by various electronic payment systems such as NEFT, RTGS (Real Time Gross Settlement) and CFMS (Central Fund Management System). IFSC code is mandatory to transfer money from one bank account to another bank account.