The letter ‘S’ in the term IFSC stands for State.
IFSC stands for Indian Financial System Code. It is a 11-digit code that identifies branches of banks in India. The first four digits of the IFSC code represent the bank code, the next four digits represent the branch code, and the last three digits represent the MICR code.
The bank code is assigned by the Reserve Bank of India (RBI), while the branch code is assigned by the respective bank. The MICR code is a 9-digit code that is used for clearing cheques.
The IFSC code is used for electronic fund transfers, such as NEFT and RTGS. It is also used for online banking and bill payments.
The following are the options for the question:
- Subscriber: This is not the correct answer because the IFSC code does not identify subscribers.
- State: This is the correct answer because the first four digits of the IFSC code represent the state in which the bank branch is located.
- System: This is not the correct answer because the IFSC code does not identify a system.
- Source: This is not the correct answer because the IFSC code does not identify a source.