Old IFSC Code vs New IFSC Code
11 January, 2024
In addition to enabling secure electronic money transfer through different payment systems, the Indian Financial System Code (IFSC) also helps in tracking a transaction status. If you enter the wrong IFSC code while sending money, the transaction is likely to fail or get stuck.
In case two banks merge, details like IFSC and Magnetic Ink Character Recognition (MICR) codes are usually updated per the new arrangement to make transferring funds and tracking transactions easier. You need to remove the old IFSC and update it with new IFSC in required fields to ensure smooth transactions.
IFSC Code: Overview
A unique 11-digit alphanumeric code, Indian Financial System Code (IFSC) is assigned to a bank branch to help identify it. This code is assigned to each bank participating in the National Electronic Fund Transfer (NEFT) system, which is owned and operated by the Reserve Bank of India (RBI). The first four digits represent the bank, the fifth digit is typically zero while the last six digits represent the bank branch.
Reasons for IFSC Code Change
IFSC codes can change for numerous reasons. Listed below are a few:
Branch relocation: Since the last six digits of IFSC indicate the bank branch, relocation of the bank branch can lead to a new IFSC for the branch.
Merging of banks: When a bank merges or demerges, it can cause a change in the IFSC code. The merger may cause a change in the bank name and since the first 4 digits of IFSC code represent the bank, the branch’s IFSC will also change.
Branch closure: A bank may deactivate a branch’s IFSC if the branch is closed permanently.
The customers of each bank that is merged into or acquires another bank are notified of the major change well in advance usually; this is done so that they can enjoy banking services as usual with the updated IFSC codes. It is important to use the updated or the new IFSC code as the old IFSC codes cannot be used to transfer money.
What Does the Change From Old to New IFSC Code Mean for You?
If you had a bank account in a bank that is being merged into another bank, you’ll need to update the new IFSC to continue using services like NEFT and Real-Time Gross Settlement (RTGS).
This means that if you need to send money to a beneficiary in your account, you will have to delete them from your list and register them again with the updated IFSC code and other details. Similarly, in case of standing instructions or scheduled payments, you have to delete the previous ones and add them with updated details like the new IFSC.
Some operations may be accepting both the old and new IFSC codes, but you are advised to use the bank’s new IFSC code to avoid difficulties in your transactions.
How to Find the New IFSC Codes?
You can ask the beneficiary or receiver to share new IFSC code with you or search it online if you need to make payments.
Your account statement will have the updated IFSC. Additionally, the new IFSC can also be located on the cheque leaf of the updated cheque book.
HDFC Bank IFSC Code Finder
You can find the latest IFSC of any branch of HDFC Bank by using the code finder available on the official website. You only need to enter the city and state in the required fields to browse the list of all HDFC Banks in that city with their IFSC codes and branch addresses.
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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.