SWIFT Code

Banking

Quick Definition

A SWIFT Code is a unique identification code used to identify banks and financial institutions globally for international money transfers.

Detailed Explanation

A SWIFT Code (also known as BIC – Bank Identifier Code) is used to ensure that international transfers are sent to the correct bank and branch. It is issued by the Society for Worldwide Interbank Financial Telecommunication and is recognized worldwide.

A typical SWIFT code consists of 8 to 11 characters, which include:

  • Bank Code (4 letters) – Identifies the bank
  • Country Code (2 letters) – Identifies the country
  • Location Code (2 characters) – Identifies the city
  • Branch Code (3 characters, optional) – Identifies the branch

SWIFT codes are essential for cross-border transactions, wire transfers, and international trade payments. Without the correct SWIFT code, transfers may be delayed or rejected.

It is different from IFSC (used for domestic transfers in India), as SWIFT is specifically for international banking transactions.

Example

"<p> A SWIFT code like <strong>HDFCINBBXXX</strong> represents: </p> <ul> <li>HDFC → Bank name</li> <li>IN → India</li> <li>BB → Location</li> <li>XXX → Main branch</li> </ul>"

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