Saves Time & Money
Online banking’s biggest advantage over conventional banking is that it saves time. You can skip the traffic, the queues and the formalities of conventional banking and just outright complete your banking transaction within a span of minutes at your comfort and convenience. IFSC facilitates such online transactions and saves your time. Also, online banking enabled through IFSC helps make banking paperless and hence saves money. Such electronic banking is environmentally-friendly too apart from being simpler and quicker.
Shorter Transfer Time
Online banking enabled by IFSC also saves the time, effort and money, conventional services such as demand draft and bank cheques take for the fund transfer to be successful. Also the transaction is reflected in both the sender’s and the beneficiary’s accounts’ immediately as IFSC details are already confirmed. Moreover, other than the bank’s service charges (if applicable), there is no additional money spent to carry out such a quick transaction.
Secure and Transparent
For online banking, users need to submit key credentials including IFSC of the beneficiary which are subsequently verified by the bank. Only after the payer’s bank’s verification can a user make an IFSC-enabled fund transfer. This makes the process secure. Also, as online banking through the use of IFSC eliminates the human interference factor from the financial transaction process, such banking becomes more transparent and accountable and reduces the possibility of any kind of scam which can be carried out in the system. Moreover, in online banking since both the sender and the receiver account holders are informed of the transaction immediately through SMS or email, such banking is less susceptible to fraud or any loss.
Helps in Banks’ Reconciliation
IFS codes are unique to each participating bank branch which is how they help in a bank’s data’s reconciliation and validation. Without IFS codes, accuracy of electronic transactions will go down and banks stand the danger of carrying out inaccurate transactions. Also since all banks are now digitally-enabled, online fund transfers facilitated through IFSC help them in quick reconciliation. Also, IFSC being mandated for individual as well as corporate transactions helps banks in disbursing funds quickly and correctly. IFSC also makes it easy for banks to communicate and comprehend transactions across their branches and with the other banks too.