Here are all the details you need to know about the IFSC code and Swift code.
IFSC and Swift Code are both often used in the banking industry, although they refer to quite different things and are issued by different organisations. Within financial institutions, the use of an IFSC Code ensures the efficient processing of transactions involving deposits and/or withdrawals. In contrast, Swift Code accredits each individual bank with a unique electronic fund transfer code.
Table of Contents
In this article, we will talk about all there is to know about IFSC and Swift Code, including the key distinctions between IFSC and Swift code, among other specifics.
See also: What is MICR code?
What is a Swift code?
The Society for Worldwide Interbank Financial Telecommunication assigns a unique identifier called a Swift code to each financial institution so that they may easily share and receive transactional data among themselves and other financial institutions throughout the globe.
What is an IFSC code?
To do business using electronic payment systems like RTGS, NEFT, or IMPS in India, you’ll require a unique 11-character alphanumeric code known as an IFSC Code. The Reserve Bank of India provides each bank with an IFSC Code to identify its branches inside the country.
The IFSC codes are often shown on the chequebook, passbook, and other papers necessary for conducting financial operations. Except for UPI-based payments, an IFSC code is necessary for anybody wishing to conduct any kind of digital financial transaction.
Is an IFSC code similar to a SWIFT code?
There is a distinction between the IFSC code and the SWIFT code. The Indian IFSC Code is needed for RTGS, NEFT, and IMPS transactions involving a bank account. Using the IFSC code is only necessary for domestic bank transfers inside the country’s borders. On the other hand, the structure of a SWIFT code makes it possible to conduct trouble-free financial transactions across international borders.
Is IFSC and Swift code the same?
The following is a list of the key distinctions that can be made between SWIFT codes and IFSC codes:
- The Society for Worldwide Interbank Financial Telecommunication Code is the full name of what is referred to as the SWIFT Code. The acronym “IFSC code” refers to the “Indian Financial System Code.”
- The SWIFT code is an internationally recognised code used for international credit transfers and the transmission of communications between banks. When transferring money electronically, you’ll need the IFSC Code, which is the unique identifier of a certain bank branch.
- As opposed to the IFSC code, which the Reserve Bank of India created, the SWIFT code was ratified by the International Organization for Standardization (ISO).
- The SWIFT code-enabled banks are the only ones allowed to participate in an overseas wire transfer. On the other hand, every single bank branch in India has an IFSC code.
- There are either 8 or 11 characters that make up the SWIFT code. However, an IFSC code is 11 characters long.
- Fees for sending money internationally (using a SWIFT code) are greater than those for sending money inside a country (IFSC code).
- Your bank’s SWIFT code may be found on your account statement or the bank’s website, while your IFSC code can be located on your branch’s chequebook or on the Reserve Bank of India’s website.
IFSC code and Swift code: Comparison
| Basis for comparison | IFSC Code | Swift Code |
| Stands for | Indian Financial System Code | Society for Worldwide Interbank Financial Telecommunication Code. |
| Characters | 11 | 8 or 11 |
| Meaning | The Indian Financial System Designation is a code that uniquely identifies a bank branch that is participating in an electronic money transfer system in India. | To facilitate international credit transfers and the transmission of communications between financial institutions, Swift codes are utilised. |
| Developed by | Reserve Bank of India (RBI) | International Organization for Standardization (ISO) |
| Found in | Bank-branch chequebook and the RBI website. | Bank’s website or the account statement. |
| Applies to | All the bank branches in India. | Only Swift-enabled banks. |
| Fee | Nominal | High |
FAQs
What is the distinction between SWIFT and IFSC?
To put it simply, an IFSC Code allows for the efficient processing of deposits and/or withdrawals inside a financial institution. The Society for Worldwide Interbank Financial Telecommunication assigns each bank its unique Swift Code.
Does every branch use the same SWIFT code?
It varies from bank to bank. While some financial institutions select a single SWIFT code for all of their branches, others provide separate codes for each location. If you need to transfer money to a bank but don't know the appropriate SWIFT code, you may usually use the code for the bank's main branch.
How can I find the SWIFT code for my bank, given that not all banks use them?
To find the SWIFT code for your bank, you can check your bank statements or account documents, contact your bank, or use an online SWIFT code lookup tool. If your bank does not have a SWIFT code, you may need to use a different method to send or receive international payments.
Was this article useful?
😃(0)
😐(0)
😔(0)
Housing News Desk
Housing News Desk is the news desk of leading online real estate portal, Housing.com. Housing News Desk focuses on a variety of topics such as real estate laws, taxes, current news, property trends, home loans, rentals, décor, green homes, home improvement, etc. The main objective of the news desk, is to cover the real estate sector from the perspective of providing information that is useful to the end-user.
Facebook: https://www.facebook.com/housing.com/
Twitter: https://twitter.com/Housing
Email: editor@housing.com
Related Posts
How do I know if my IFSC Code is valid?.Swami Vivekananda Scholarship 2023: Everything you should know.All you must know about Labour Card Odisha.Ramai Awas Yojana: All you need to know.PNB Balance Check Number – How to Check your Balance Easily.How to fill medical certificate form for driving licence application.IFSC and SWIFT codes are fundamental in global banking, ensuring seamless transactions and accurate identification of banks and their branches. The IFSC (Indian Financial System Code) is a unique alphanumeric code designed specifically for electronic payment systems within India, such as RTGS, NEFT, and IMPS. Administered by the Reserve Bank of India (RBI), each bank branch in India is assigned an 11-character IFSC code, crucial for domestic transactions.
On the other hand, SWIFT (Society for Worldwide Interbank Financial Telecommunication) codes are internationally recognized identifiers used for global financial transactions and interbank communication. These codes, established and approved by the International Organization for Standardization (ISO), allow banks worldwide to exchange data securely and conduct international credit transfers.
Key differences between IFSC and SWIFT codes are significant. While the IFSC code is specific to Indian bank branches and is essential for domestic transactions within the country, SWIFT codes facilitate trouble-free international transfers and communication between financial institutions across borders. SWIFT codes usually have either 8 or 11 characters, differing from the 11-character IFSC codes.
Another distinction lies in the issuing authorities: the RBI manages IFSC codes for Indian banks, whereas SWIFT codes are internationally ratified by ISO. Moreover, while every bank branch in India has an IFSC code, only SWIFT-enabled banks participate in overseas wire transfers.
Locating these codes differs as well: IFSC codes can be found on bank branch chequebooks or on the RBI's website, whereas SWIFT codes might appear on account statements, bank websites, or through online SWIFT code lookup tools.
The significance of these codes extends to transaction fees; international transfers involving SWIFT codes typically incur higher fees compared to domestic transactions that utilize IFSC codes.
Understanding these differences is crucial for individuals engaging in financial transactions, whether domestic or international, ensuring accurate and efficient transfers while adhering to the specific requirements of each banking system.
The distinction between these codes ensures that the right code is used for the right purpose, be it within national borders or across international lines, streamlining the financial processes for individuals and businesses globally.
