Laxmi Vilas Bank IFSC Code

Lakshmi Vilas Bank Limited was established in 1926 by seven businessmen under the guidance and leadership of Shri V.S.N. Ramalinga Chettiar. The primary objective of the bank was to serve the financial needs of people in Karur and primarily those who were in trading businesses, agriculture and allied industries. The bank was set up on 3 November 1926 and after the introduction of the Banking Regulations Act, 1949 it obtained a banking license issued by RBI on 19 June 1958. It was pronounced a ‘scheduled commercial bank’ on 11 August 1958 and this marked the beginning of its operations as a full-fledged commercial bank.

Indian Financial System Code (or more commonly known as IFSC code) is an alpha-numeric code consisting of 11-digits. It is mainly used to identify branches of banks in the National Electronic Funds Transfer (NEFT) network by RBI. IFSC code is essential in electronic payment system applications like NEFT. This code is a must for online fund transfers from one bank account to another. Every bank branch is given a unique code by RBI and the code is never repeated across branches.

The first 4 digits of an IFSC code give reference to the bank name and the last 6 characters denote the particular branch. The 5th character is generally set at zero.

Following are some of the key functionalities that IFSC code enables for banks and RBI:

Seamless online funds movement: IFSC code helps with convenient and seamless transfer of funds across bank accounts. IFSC Code is compulsory to facilitate all kinds of electronic or online funds transfer mechanisms like NEFT, RTGS or IMPS

Close monitoring of transactions: IFSC code is required by RBI for keeping regular track of various banking transactions. This helps to minimise all potential discrepancies involved in the fund transfer process.

Unique identity: IFSC code provides a unique identity to all banks and branches. This helps customers in avoiding all possible errors during fund transfer.

Elimination of Errors: IFSC code allows users to securely carry out fund transfers, thereby eliminating any possible frauds.

IFSC code is made up of 11 characters and is a combination of the following essential components:

• Initial 4 characters are for the bank code
• The 5th character is set at ‘0’
• Remaining 6 combination of characters is the branch-specific code

Here are the main benefits offered by the Indian Financial System Code (IFSC):

• The code helps to uniquely identify a bank branch, thus allowing customers to avoid any kind of mistakes at the time of online transfer of funds through NEFT, RTGS or IMPS
• Customers don’t have to visit the bank branch for fund transfer requirements. The code allows easy online money transfer and is therefore convenient as well as an eco-friendly option
• Online transactions such as bill payments can also be easily processed by using IFSC code
• RBI uses IFSC code to closely monitor online transactions across banks. This helps to eliminate any chances of discrepancy during fund transfers
• The code allows banks and RBI to ensure seamless financial transactions done through online modes
• The IFSC code helps to recognize specific recipient bank branch in fund transfers
• IFSC code is a unique identification for all banks and branches.

Here are the different uses of IFSC Code. IFSC code allows seamless fund transfer across banks and branches.

Funds Transfer: With IFSC Code, users can easily transfer funds instantly and easily. Users need to state the beneficiary’s account number, branch name, IFSC code for easy online transfers.

Bill Payments: IFSC code also allows easy bill payments such as credit cards, etc. The transactions can be carried out using smartphones, laptops, tablets, etc.

IFSC code is primarily used for the transfer of funds online through three main payment mechanisms across India. These include IMPS, NEFT and RTGS. The 3 fund transfer mechanisms allow easy net banking and mobile banking transactions.

NEFT - NEFT stands for National Electronic Fund Transfer. This electronic payment mechanism is available to use in India for fast interbank funds transfer. In NEFT, the fund transfer can take anywhere between 1-2 hours. The main benefits of NEFT include no minimum and maximum transaction amount. This is available with all major banks in India. The money transfer can be done between 8 AM to 6:30 PM on all weekdays and 8 AM to 1 PM on Saturdays. NEFT fund transfer charges usually vary across banks. NEFT charges can range from Rs. 2.5 to Rs. 25 and GST and differ as per transaction amount.

RTGS - RTGS stands for Real-Time Gross Settlement. It is known as one of the fastest interbank funds transfer mechanisms in India. Funds transfer can be done on a real-time basis when it comes to RTGS. A minimum transaction of Rs. 2 lakhs is required in RTGS. All RTGS enabled banks to provide this facility. The mechanism allows fund transfer on all working days between 8 AM to 4 PM from Monday to Friday and Saturdays. It requires a Rs. 60 plus GST charge for fund transfer. The charges could vary as per transaction amount.

IMPS – IMPS stands for Immediate Payment System. This electronic fund transfer facility involves a transfer to the beneficiarys account in a matter of a few seconds. IMPS fund transfer is safe and involves a two-step verification process for performing transactions. It doesn’t have any minimum fund limit. The maximum limit could differ across banks. This facility can be used by customers through mobile banking and internet banking. User can transfer funds 24*7 easily even on bank holidays. This facility comes with a charge of Rs. 15 plus GST as per the fund transfer value.

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