In case someone enters an incorrect IFSC while making an online transfer, the funds are credited back to the sender’s bank account.
If you have a bank account, you must have seen an IFSC reference on the passbook. The unique code forms an essential part of the Indian banking infrastructure. Let us find out more about this unique code.
What is IFSC?
The Indian Financial System Code (IFSC) is an 11-character alphanumerical code that is used by banks to identify the branches where people have their bank accounts. Every bank branch has a unique IFSC and no two branches (even of the same bank) will ever have the same code. In an IFSC, the first four digits tell the name of the bank and the last six characters are numbers representing the branch. The fifth character is zero. The IFSC is assigned by the Reserve Bank of India (RBI).
Purpose of IFSC The IFSC is used by electronic payment system applications such as Unified Payment Interfaces (UPI). It is used only to transfer or send funds within India. It is mandatory when transferring money from one bank account to another. Without the IFSC, you cannot make online transfers. The IFSC ensures that the money being transferred reaches the right destination bank without any mishap during the transaction process. It also helps the RBI keep track of all digital banking transactions.
Where to find the IFSC?
The IFSC of a bank’s branch can be found in the cheque book. Besides, it can be found on the first page of the passbook. Another simple way to find out the IFSC is to refer to the official website of the RBI or the bank’s website.
There are thousands of banks in the world where currency notes are counted and packed in the denominations of hundreds. Job of counting and packing is done by a large number of people. The job of counting the currency notes is quite boring. Scientists have developed a machine which automatically counts and packs the currency notes. This machine is a wonder of electronics.
Money has always fascinated mankind from the time of Aristotle to the present day. Aristotle observed that man is a social being and establishes certain norms and regulations for their social interaction. Men employed money as a mode of exchange to facilitate such social dealings from their economical aspect.
The first bank in the U.S.A. was set up in Philadelphia in the year 1782. In England, the first bank was started in the year 1825. In India, the first bank, the Presidency Bank of Bombay, was established in 1804.
By 1717, the British started to produce Mughal money at the Bombay Mint, with permission from the Mughal emperor Farrukhsiyar. The British gold coins were called ‘carolina’; ‘anglina’ was the silver coin, and ‘copperoon’, the copper coins. Tinnies were tin coins.
Commemorative coins are usually issued to pay respect to an important person, or to celebrate a special occasion.
You might know by now that the rupee is a currency used by many countries in the world, including Sri Lanka, Nepal, Pakistan, and the Maldives other than India. But do you know where the word ‘rupee’ came from?
Over the years since its introduction, the Indian rupee has gone through significant changes. We saw that the rupee coin was first introduced by Sher Shah Suri. During his time, 40 copper coins amounted to a rupee. This was accepted by the Mughals as well.
We saw that the first bank note to be issued after the Independence was the one-rupee note with the symbol of the lion capital. Starting from 1951, inscriptions on notes were made in Hindi too.
Star series notes, in its simplest definition, are replacement 
notes for errors in printing.
There are many countries in the world that use the ‘rupee’ as their currency. This includes Indonesia, Mauritius, Nepal, Pakistan, Seychelles and Sri Lanka, apart from our own India.
Ever noticed a small clause written on our banknotes? If you haven’t, take a close look at it. It is the promissory note, along with the signature of the RBI Governor.
The Reserve Bank of India was founded on April 1, 1935, constituted under the Reserve Bank of India Act 1934. It was a shareholder’s bank then, and remained so until its nationalization in 1949. It has been fully owned by the Indian government ever since.
The Reserve Bank of India has the sole right to produce currency notes of all denominations in the country. Other than this, it has many other functions.
Yes, it is the Reserve Bank of India that issues banknotes needed for the country. But have you ever wondered on what basis they issue the currency notes? Most certainly, on a demand-basis.
Broadly, the Indian banking sector can be divided into two types of banks- scheduled and non-scheduled.
Until the 1960s, all banks except the State Bank of India remained under the ownership and management of private persons. By then, banks had become an important tool for the development of economy.
In its literal sense, ‘liberalization’ means relaxation of restrictions or regulations. It was a policy adopted in our country almost two decades ago. It was introduced in the 1990s in our banking sector too. Manmohan Singh was the finance minister then. So, what exactly did this process mean?
Negotiable instruments are those that can be converted into liquid cash under certain conditions like that of a cheque.
This concept surely seems familiar to all of us, as it is now filling newspapers and newsrooms across the country.
Australia is a country that once successfully demonetized its currency. In 1996, the country replaced its banknotes with their plastic or polymer equivalents. The move was intended to fight financial malpractices that were growing rampant.
The most important argument in support of demonetization is that the process will help curb financial malpractices in the country.
One of the biggest arguments against the move is that violators and tax evaders do not always hoard money in 500 and 1000 notes- most of it is either in the form of assets or investments. In the case of liquid money too, they could possibly be deposited in the Swiss banks, or in other banks through false accounts, or benami accounts. Hence, critics believe that black money cannot be totally controlled with demonetization.
Canadian dollar is the fifth most valuable reserve currency in the world. It has also become popular among the central banks all over, thanks to the country’s strong and stable economic system.
Centuries ago, when the concept of banking arose, cash transactions were made manually. That means that one had to literally meet the other and deliver money. Later the system improved, and money was transferred between accounts. Even so, a person responsible had to move around with money, and it took days to transfer.
All of us may have at least once got bank-notes that are torn or soiled. Have you ever wondered what is done with such currencies? Let’s tell you.
You must have heard about the concept of inflation from your parents or teachers. Let’s keep it simple inflation is a general rise in the price of goods and services.
The term ‘Swiss banks’ may seem familiar as they are often quoted in news reports. However, they are not always famous for the right reasons!
A bank run occurs when a large number of customers withdraw money from their accounts simultaneously, fearing that the bank may collapse. This creates a big problem for the institution, because mostly it keeps only a small fraction of its deposits as cash on hand.
Recession is not something we hear about in usual conversations. But whenever it comes up, we know that the situation may not look good.
An automated teller machine, or ATM, is considered to be one of the biggest inventions of the past century.
Internet banking is one of the most popular methods of banking today, used by people across the globe. It is also known as e-banking or online banking.
In simple terms, a credit card is a payment card issued by banks to its customers, to use for purchasing goods and services. It is like borrowing money from your bank for shopping, and then repaying it with an interest amount.
Similar to credit cards, debit cards are also issued by banks to their customers to help them purchase goods and services. But in their functions, these two cards are quite different.
Electronic commerce or e-commerce, in its simplest definition, is trade through the Internet.
As the name suggests, representative money ‘represents’ something that is usually valuable. It is not money, but a symbol. So naturally, it does not consist of coins or banknotes.
The international definition given for hawala is this – money transfer without money movement.
institutions. But they will exchange your dollar for rupees only at a rate fixed by the government. You may lose a lot of money there. Besides, the institution will charge an extra amount for delivery and service.
It is a system that works purely on trust. You will not get a receipt for the transaction, and any loss that occurs will be solely yours. Unlike a proper bank transfer, hawala brokers contact their counterparts in India or any country to which the money has to be transferred. The counterparts then deliver the amount to the concerned person. Hence, it is said that there is no actual movement of money. This is a crime in any country.
Considered as one of the earliest mass forms of coinage, silver currencies of varied shapes and sizes have been used for more than 1000 years.
It is believed that coins came into use during the 7th century BC. Coins appeared in different forms in different parts of the world, and it is quite difficult to trace their origins.
History reveals that the money we see today has appeared in differing forms before- as cattle, as salt, as tea, as tobacco etc. But none of these lasted very long. Over a period of time, the need to develop currencies that were handy and long lasting arose. This led to the birth of metals as money.
Giro was a mode of banking first used by Egyptians in the 4th century BC. The idea behind the system was to transfer money from one person to another. State granary units acted as banks then, and accepted ‘giro’ payments.
At a time when a tiny card can facilitate payments of all kind, it might seem strange that centuries ago, people used ‘tea’ as a mode of payment. But yes, some actually did!
No diet can be complete without a pinch of salt. Not only does this mineral make our food tasty, but it also helps in preserving them. A healthy person should have an adequate amount of salt in his body to avoid many diseases.
Long before currencies came into existence, people used different mediums for payment. One such medium was shells. They were exchanged for the goods and services one wanted.
We have seen that people, long before the invention of currencies, depended on the exchange of goods and services for getting by. But what were the things worthy of transaction? Strange enough, there were goods ranging from feathers to gold!
Exchanging a toy for another, or a book for a new one, seems interesting. But what would happen if you were to exchange your essentials for things that were equally necessary? Such a transaction, called bartering, is where two beneficiaries exchange goods and services without giving or taking money.