An IFSC used for electronic funds transfer in India consists of how many characters?
- A.Nine
- B.Ten
- C.Eleven
- D.Twelve
Correct answer
Explanation
The correct answer is C, eleven. The Indian Financial System Code is made of eleven characters: the first four letters stand for the bank, the fifth is always the digit zero and is kept in reserve for future use, and the last six identify the particular branch. It is required for RTGS, NEFT and for an IMPS transfer made with an account number. Option A is wrong because nine is the length of the MICR code printed on a cheque, which is made of three digits each for the city, the bank and the branch. Option B is wrong because no Indian banking code has ten characters. Option D is wrong because twelve is the length of an Aadhaar number, which is used in the Aadhaar Enabled Payment System but is not a bank branch code. Papers mix IFSC, MICR and MMID in one question, so learn eleven, nine and seven together.
Read the full article: Payment Systems in India: NEFT, RTGS and IMPS Notes
Practice Questions
View allWhat is the minimum amount that can be remitted through RTGS?
- A.Ten thousand rupees
- B.One lakh rupees
- C.Two lakh rupees
- D.Five lakh rupees
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RTGS is meant for large value payments, and the Reserve Bank has fixed a floor of two lakh rupees for a remittance through it, while setting no ceiling of its own on the amount.
Read the full explanation →NEFT stands for:
- A.National Electronic Funds Transfer
- B.New Electronic Fund Transaction
- C.National Exchange of Funds and Transfers
- D.Net Electronic Financial Transfer
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NEFT is the nationwide system operated by the Reserve Bank of India for transferring funds from one bank account to another, settled on a deferred net basis in half hourly batches and available on all days of the year since December 2019.
Read the full explanation →In which payment system is each transaction settled individually and in real time, without being grouped into batches?
- A.NEFT
- B.RTGS
- C.NACH
- D.Cheque Truncation System
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The words in the name say it: real time means the instruction is carried out as it is received, and gross settlement means each instruction is settled by itself rather than set off against others.
Read the full explanation →The Immediate Payment Service (IMPS) is operated by:
- A.The Reserve Bank of India
- B.The State Bank of India
- C.The National Payments Corporation of India
- D.The Indian Banks Association
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IMPS was launched by that organisation in 2010 and was the first Indian system to offer interbank transfer instantly at any hour, including Sundays and holidays.
Read the full explanation →How is a NEFT transaction settled?
- A.Individually, the moment it is received
- B.On a deferred net basis, in half hourly batches
- C.Only at the end of the working day
- D.Only after the beneficiary bank confirms it
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NEFT holds instructions for a short period, works out what each bank owes the others on balance, and settles only that difference; the batches run every half hour through all twenty four hours, since the service was made available on all days of the year in December 2019.
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