Posted on Sep 22, 2020
Whenever you transfer money through the bank account, you need to enter the right account number as well as the right IFSC code.
Every bank branch has its own IFSC Code.
First of all, you need to add account in the list of a beneficiary under your bank account to make online fund transfer using National Electronic Funds Transfer (NEFT), Real-time Gross Settlement (RTGS) or Immediate Payment Service (IMPS).
To add a beneficiary, You need to provide the following information at the time of adding.
Beneficiary's Branch Name
Beneficiary's Bank Name
Beneficiary's Account Type
Beneficiary's Account Number
Beneficiary's Branch IFSC
Most of the bank check Beneficiary's Name as a precautionary measure to ensure fund transfer happens to the correct account.
RBI identifies the beneficiary’s bank using IFSC code to which the transfer has to be made.
IFSC stands for Indian Financial System Code. It’s a unique eleven-digit alphanumeric code which is consist of alphabets and numbers. A code uniquely identifies each bank branch participating in the various online money transfer options.
Banks generally ask customers to select IFSC code by searching bank name and branch but banks also provide an option to manually enter IFSC code.
Case 1- Entered IFSC code of different branch but the bank is same:- Let's say you want to transfer money to the Jaipur branch of PNB but by mistake, you selected the IFSC code of Udaipur PNB branch so in this case, money transfer could still be possible because other information Beneficiary's Name and Beneficiary's Account Number you enter are correct. Beneficiary's Account Number tells the system which branch it belongs to therefore transfer can be processed.
Case 2:- Entered IFSC code of a different bank:- let's say you want to transfer money to the Jaipur branch of PNB but by mistake, you selected the IFSC code of the different bank, for example, SBI so in this case, Banking System will try to match the Beneficiary's Name and Account Number on SBI branch and the same account will not be there so the transaction would be failed but in case if Beneficiary's Name and Account Number is matched with SBI bank then the transaction might be possible but it is very less chance of having same account and name in two banks.
If money is transferred to the wrong account then usually very difficult to revert. You should be very careful when making an online transfer.