Proposal to build IFSC Directory of Bank Branches

                                                                                                                  
To,

The Chairman & Managing Director, 
All Banks

PROPOSAL TO BUILD IFSC DIRECTORY OF BANK BRANCHES

Season’s Greetings.

In the Structured Financial Messaging System (SFMS), the Indian Financial System Code (IFSC) is being used as the addressing code in user-to-user message transmission. The Payment System Applications such as RTGS, CFMS and NEFT developed by the Reserve Bank of India use these codes. The code consists of 11 Characters - First 4 characters (4!A) represent the entity; Fifth position has been defaulted with a ‘0’ (Zero) for future use; and the Last 6 character (6!X) denotes the branch identity. 

At present, banks are free to formulate their own codes with the above guidelines given to them and IDRBT registers the IFSC codes. However, there is no formal directory available outside SFMS and banks, which do not have access to SFMS cannot avail the services. Availability of a Directory of all bank branches in the country with IFSC code allotted can make a difference to the electronic payment platforms and it would ensure that the transaction would reach the destination. 

IFSC is being identified by the RBI as the code to be used for various payment system projects within the country, and it would, in due course, cover all networked branches in the country. In due course, when all bank branches participate in electronic payment systems, they would need to have a single identifiable unique code and IFSC would serve the purpose effectively.

In view of the above, IDRBT, as directed by RBI, proposes to publish an IFSC directory of all banks and bank branches. In a meeting convened by the IDRBT on the 27th December 2005 involving a few select banks, it has been deliberated to follow the existing pattern of IFSC as detailed above without disturbing the already existing IFSC codes and the applications using the same. Further, IDRBT was requested to publish the Directory and host the same in IDRBT website at the earliest.

Towards achieving the goal of publishing the Directory at short notice, I request your bank to kindly allot the IFSC to all the branches (which do not have an IFSC for the purposes of RTGS/CFMS/SFMS/NEFT already) and communicate the same in the format enclosed. 

This being a part of the technology infrastructure initiative being created for the banking and financial sector by IDRBT, we have decided to dispense with the charges being levied currently @ Rs. 5000/- per IFSC with immediate effect.

With Warm regards,

Yours sincerely,
Sd/-
(Arvind Sharma)
Director,
IDRBT

Annexure