Money transfer has become effortless ever since the introduction of electronic funds transfer system. At a time when everything is online, availability of electronic funds transfer system by the Reserve Bank of India (RBI) has made everyone’s life convenient. Today, funds can be transferred easily from one bank account to another through schemes such as NEFT, RTGS and IMPS. All of these schemes use IFSC Code to transfer funds to the beneficiary’s bank branch. For example, if you want to transfer money to a bank account in ICICI Bank, you need the ICICI Bank IFSC Code for the beneficiary’s branch.

What is IFSC Code?

An IFSC Code is a unique code that is used to distinguish the beneficiary branch from other branches during electronic fund transfer. It stands for Indian Financial System Code and is one of the most crucial components of transferring funds electronically via NEFT, RTGS and IMPS. None of the banks can send money to each other without knowing the IFSC Code of the beneficiary’s bank branch. For instance, if the money has to be transferred to an account in Indian Bank, the sender should know the Indian Bank IFSC Code for the beneficiary’s branch.

An IFSC Code consists of 11 digits which are a mix of alphabets and numbers. The first four digits of the code signify the bank code, which is same for all the branches of a bank. For example, the Indian Bank IFSC Code and the ICICI Bank IFSC Code for all branches start with IDIB and ICIC respectively. The last six digits denote the branch code, which is different for every branch of the bank. The bank code and branch code is separated by number zero (0). For example, the Indian Bank IFSC Code for Defence Colony, New Delhi branch is IDIB000D008 and the ICICI Bank IFSC Code for Janakpuri C-1 Block, New Delhi branch is ICIC0000376.

Every bank branch in India that offers electronic funds transfer service has an IFSC Code. The IFSC Code of a bank branch is printed on the cheque book given to its account holders. A person can also find the IFSC Code of any bank branch in India by visiting the official website of that bank. Moreover, it is also available on the official website of the Reserve Bank of India. From Indian Bank IFSC Code to ICICI Bank IFSC Code, you can find them all on the website of the RBI.

What is NEFT?

NEFT or National Electronic Funds Transfer is an electronic fund transfer scheme that uses internet banking or mobile banking to transfer funds from one bank account to another. It allows the transfer of money between two bank accounts within the same bank or in two separate banks. The scheme can also be used to make automatic payment through your bank account towards regular expenses such as credit card bills, EMIs, etc. However, fund transfer through NEFT is possible only if both the sender and the beneficiary’s branch are NEFT-enabled.

The Reserve Bank of India regulates all transactions through NEFT. The funds are transferred in 23 half-hourly batches with the money being credited in the beneficiary’s account within a maximum of 2 hours.

NEFT Timings

All fund transfer requests by NEFT are settled by the banks between 8 am to 7 pm on working days, excluding second and fourth Saturdays of every month.

What is RTGS?

RTGS or Real-Time Gross Settlement is another electronic fund transfer scheme which enables people to transfer money from one bank to another on a real-time basis. It allows people to send or receive money between two bank accounts of the same bank or of two different banks through mobile and internet banking services. However, both the sender and the receiver bank’s branch should be RTGS-enabled to be able to make the transfer. Just like NEFT, all RTGS transactions are regulated by the Reserve Bank of India.

RTGS is a faster method of transferring funds as money is credited in the beneficiary’s bank account within 30 minutes of receiving the transfer notification. However, RTGS can be used only to transfer funds of Rs 2 lakhs and above.

RTGS Timings

The RTGS service for fund transfer is available between 7 am to 6 pm on all working days. RTGS does not function on public holidays and national holidays.

How to Transfer Funds visa NEFT or RTGS?

The procedure to transfer funds via NEFT and RTGS service is very simple. However, you need access to internet banking or mobile banking facilities to be able to use NEFT or RTGS services. Follow the steps given below to transfer funds via NEFT and RTGS:

NEFT and RTGS through Mobile Banking

• Open the mobile banking application of your bank
• Log in to your account
• Go to funds transfer option
• Go to add beneficiary option if you are transferring to this account for the first time
• Add the details of the beneficiary bank account. It includes account holder’s name, account number, name of the bank, IFSC Code of the bank such as Indian Bank IFSC Code. It can take up to 12-14 hours to add a beneficiary
• After the beneficiary is added, select the beneficiary
• Enter the amount to be transferred
• Submit the details and enter your pin
• The money will be transferred

NEFT and RTGS through Mobile Banking

• Visit the official website of the bank
• Go to personal banking and login to your account
• Go to fund transfer option
• Go to add beneficiary option if you are making a transfer to this account for the first time
• Enter the details of the beneficiary bank account including account number, account holder’s name, Bank’s name and IFSC Code of the bank such as ICICI Bank IFSC Code.
• Once the beneficiary is added, select the beneficiary for funds transfer
• Enter the transfer amount
• Submit the request
• The money will be transferred to the beneficiary’s account

Charges for NEFT and RTGS Transactions

All inward transactions via NEFT and RTGS i.e. fund transfer within the same bank are not chargeable. However, customers are required to pay charges for transferring money to an account in another bank. Refer the table given below to know the charges levied on NEFT and RTGS transactions as per the transfer amount.

Transfer Amount (in Rs)	Charges Levied (in Rs), Excluding GST
NEFT
Up to 10,000	2.50
10,000 to not more than 1 lakh	5
1 lakh to not more than 2 lakhs	15
More than 2 lakhs	25
RTGS
2 lakh to not more than 5 lakhs	24.50
More than 5 lakhs	49.50