What is Bank SWIFT Code and Why You Need It for Wire Transfers

Whether you’re sending money abroad or receiving payments from overseas, understanding SWIFT codes can ensure secure and accurate transactions. This guide will walk you through what SWIFT codes are, their importance, and how they differ from other codes, helping you carry out wire transfers with confidence.

Also Read: What Is IBAN Number and Why You Need It To Transfer Money Abroad?

What is a Bank SWIFT Code?

SWIFT code is a globally recognised alphanumeric identifier for a bank branch in the SWIFT (Society for Worldwide Interbank Financial Telecommunication) network. 

Think of a SWIFT code as a bank’s digital address. An address that ensures the communication and transactions reach the bank branch securely and precisely. 

Is the SWIFT Code and BIC the same? 

Yes, both terms denote the same alphanumeric character combination used to represent banks globally. SWIFT Code is the name brought up by the SWIFT organisation whereas BIC (Bank Identifier Code) is the ISO terminology used for the same.

Format for SWIFT Code 

A SWIFT code consists of 8-11 characters which can be identified as follows:

1. Bank Code: The first four letters represent an abbreviation of the bank’s name.
   • Ex. Federal Bank- FDRL
   • AIB Bank- AIBK

2. Country Code: The next 2 letters display the country where the bank branch is located.
   • India- IN
   • Ireland- IE

3. Head Office Code: The following 2 characters are a combination of a letter and number which depicts the location code of the bank’s head office.
   • Mumbai- BB
   • Dublin- 2D

4. Branch Code: The last 3 characters denote the branch of the account holder. If the head office does not have any branches, XXX is placed at the end.
   • Andheri- BB2
   • Dublin- XXX

All together it shall be read as;

•  FDRLINBBBB2
• AIBKIE2DXXX

How to Find My Bank SWIFT Code?

There are several ways in which you can know the SWIFT code of your bank branch:

1. Bank Documents

SWIFT code shall be mentioned in your bank documents such as bank statements and checks.

2. Visit Bank Website

Search for your bank’s SWIFT code in Google and refer to your bank’s official website.

3. Contact Your Bank

Visit your bank branch or call your bank relationship manager and request the SWIFT code details. 

Pro Tip: For precise information about your SWIFT code, it is always better to directly contact your bank branch.

Importance of SWIFT Code in International Money Transfer

1. Ensures Accuracy in Transfers

SWIFT codes specify a bank’s location and branch, helping to minimise misdirected payments.

2. Facilitating Secure Communication

The SWIFT network encrypts and standardises financial messaging, allowing banks to exchange transaction details securely and efficiently.

3. Minimizing Transaction Costs

Accurate identification of banks and branches reduces delays and additional charges that might arise from errors in routing payments.

4. Speeding Up Transactions

With SWIFT codes, international money transfers can be processed faster by streamlining communication between the sender’s and receiver’s banks.

Difference Between SWIFT Code, IBAN, and IFSC Code

Here’s a table that clearly outlines the differences between SWIFT Code, IFSC Code, and IBAN:

Aspect	SWIFT Code	IBAN	IFSC Code
Full Form	Society for Worldwide Interbank Financial Telecommunication	International Bank Account Number	Indian Financial System Code
Purpose	Identifies banks globally	Identifies individual bank accounts globally	Identifies specific bank branches within India
Structure	8-11 characters	Up to 34 characters	11 characters
Usage	Used for cross-border payments and secure interbank communication	Used for cross-border transactions to specify the recipient’s account in IBAN-compliant countries	Used for domestic NEFT, RTGS, or IMPS payments within India
Issued By	SWIFT network	banks in countries that follow IBAN standards	Reserve Bank of India (RBI)

Understanding SWIFT codes is vital for ensuring secure and accurate international money transfers. Just like how ExTravelMoney is! Let your hard-earned money reach your beneficiary safely and quickly through us. 

Also Read: What are OUR, BEN, SHA Payment Instructions in Foreign Remittance?

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