Is​‍​‌‍​‍‌​‍​‌‍​‍‌ CIF and IFSC Code Same? Here’s the Simple Difference

When you bank online or via visiting a branch, you are exposed to terms like CIF number and IFSC code. These words are oftentimes misunderstood by many people to be the same or used for similar purposes, but in fact, they are altogether different. Knowing these two terms will not only make banking less of a hassle but it will also save you from the trouble of sending money to the wrong account or updating account details incorrectly.

We can understand difficult concepts by using simple words.

What is a CIF Number?

A CIF (Customer Information File) number is a bank-given, unique number, which is used to identify a bank customer.

To put it simply the CIF is your banking ID number.

CIF is a file that comprises all the customer information of one particular person, such as:

• Name
• Address and phone number
• KYC documents
• Type of bank account and balance
• Loan details if applicable
• Demat and FD details

A bank’s customer information file (CIF) number is made up of 11 digits mostly, and the number will be the same even if you have several accounts at the same bank branch.

What is an IFSC Code?

IFSC (Indian Financial System Code) is an identification code that can uniquely point out a specific bank branch in India.

An IFSC code is a must for performing online transactions such as NEFT, RTGS and IMPS.

The IFSC code characters are 11 in number:

First 4 letters – Bank name

5th character – Always '0'

Last 6 digits – Branch code

Money cannot be sent to any bank account if IFSC is not provided.

Are CIF and IFSC codes the same?

Simple Example to Understand CIF and IFCS

Assume that you have entered a bank.

Without a doubt, your identity (CIF) reveals to the bank who you are.

The location of the branch (IFSC) shows where your account is.

Conclusion

Both CIF and IFSC are the fundamental banking identifiers that are necessary, however, they are serving totally different functions. The banking coordinator, CIF, is used by the bank to monitor your customer information. At the same time, IFSC which is the bank coordinator, lets the banking system route money transfers correctly.

The moment you grasp the distinction, banking operations turn out to be more efficient and less prone to mistakes.