What Happens When You Enter Wrong IFSC For Fund Transfers
09 January, 2024
The Indian Financial System Code (IFSC) is an alpha-numeric series of characters that represent your bank branch. This code is essential for several financial transactions, including fund transfers and onboarding journeys. If you input an erroneous IFSC Code, the banks handling the transaction will typically reject it. The process of sending money another bank account can be accomplished through traditional in-person visits to the bank or through the convenience of online banking.
Importance of IFSC in fund transfers
Adding a beneficiary is a standard procedure for facilitating online money transfers across banks. While adding a beneficiary, you are required to provide essential details such as the bank name, IFSC Code, and the recipient's account number. The IFSC code plays a vital role in this process. The IFSC is an 11-character unique code for each branch of a nationalised bank in India. It simplifies fund transfers through popular mechanisms such as National Electronic Fund Transfer (NEFT), Real-Time Gross Settlement (RTGS), and Immediate Payment Services (IMPS). The unique IFSC Code for each branch enhances transaction tracking and record-keeping, thereby making the operations of banks highly efficient.
You may ponder over the question ‘what happens if you use the wrong IFSC code’. Various potential consequences that may arise from inputting an inaccurate IFSC Code are presented here.
What happens if the IFSC code is wrong?
The likelihood of IFSC-related errors encountered during a transaction is minimal because many banks prompt customers to select the bank's name and branch from a dropdown menu to obtain the IFSC code. However, banks or even some UPI apps may provide the option for customers to manually input the IFSC code, which may at times lead to the input of incorrect IFSC.
Let us consider an example for IFSC code of incorrect branches. Imagine that you want to send money to the Uttam Nagar branch of HDFC, but you accidentally use the IFSC code for the Noida branch. In such situations, the money transfer is likely to proceed smoothly, provided that all the other information you've provided is correct. It's important to note that not all banks verify the beneficiary's name before processing the fund transfer, so as long as the account number matches, the transaction will be executed.
If, however, the IFSC code does not match with any of the bank’s IFSC branch, the transaction will most likely be rejected. The bank may not process the transaction, and you shall receive a notification of a failed fund transfer.
In some cases, the bank might delay processing the transfer. Here, you may have to manually intervene by contacting the bank.
Know the right IFSC
When transferring or receiving money, ensure the right IFSC is been provided. As an HDFC Bank customer, you can check your IFSC on your chequebook, account statement or passbook, or check it online.
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*Terms and conditions apply. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances.