The country’s largest bank, State Bank of India (SBI) on Saturday changed the name and IFS code for 1,300 of its branches. The move is a result of the merger of five of its associates.
SBI’s managing director (retail and digital banking), Praveen Gupta said customers have been informed about the change in IFSC codes, but internally. The bank has charted them to the new codes.
“Even if some payment comes based on the old IFSC codes, it will get mapped with the new codes. It will not cause any problem to any customer,” he said. The bank has put up the list of branches with old and new names and IFSC codes on its website.
IFS Code is an eleven-character alpha-numeric code assigned by Reserve Bank of India to identify every bank branch uniquely. The IFSC code is essential in online money transfer systems like NEFT and RTGS as it tracks the exact branch without any discrepancy. Customers can find the IFS code of respective branches on cheque leaves, pass books or other bank sponsored materials.
In April this year, SBI merged its five associate banks – State Bank of Bikaner and Jaipur, State Bank of Patiala, State Bank of Travancore, State Bank of Hyderabad, State Bank of Mysore – and also Bhartiya Mahila Bank into itself. So, the move was expected as it would reduce the redundancy in the data and would reduce the friction in transactions.
It is a smart move by the bank. The biggest problem which the bank could face be its implementation in Rural India. Implementation and spreading of information to them about the changes is challenging. Let’s see how the bank cope up with this challenge.