2015-11-16

SWIFT code is used when the transfer between two banks happens internationally. On the other hand, IFSC code is used when the fund transfers between banks takes place within the geographical boundaries of India. These two are the unique identification codes that need to be mentioned while digital money transfer. There are notable differences between SWIFT code and IFSC code which are discussed in this article excerpt.

Content: SWIFT Code Vs IFSC Code

Comparison Chart

Definition

Key Differences

Conclusion

Comparison Chart

Basis for Comparison

SWIFT code

IFSC code

Stands for

Society for Worldwide Interbank Financial Telecommunication Code.

Indian Financial System Code

Meaning

A worldwide recognized identification code used at the time of international credit transfer between banks and also when there is an exchange of messages between banks is SWIFT code.

A code that distinctively identifies a bank-branch involving in an electronic fund transfer system in India IFSC code.

Developed by

International Organization for Standardization (ISO)

Reserve Bank of India (RBI)

Applies to

Only SWIFT enabled banks.

All the bank branches in India.

Characters

8 or 11

11

Fee

High

Nominal

Found in

Bank's website or the account statement.

Bank-branch cheque book and RBI website.

Definition of SWIFT code

SWIFT is a short form for Society for Worldwide Interbank Financial Telecommunication Code. A unique identification code assigned to a specific bank in order to proceed money transfer between banks internationally. Moreover the code is also used when there is an interchange of messages between banks.

SWIFT code is allotted to the financial as well as non-financial institution. The code is a combination of 8 or 11 alphanumeric characters. The details of the code are provided below.

First 4 characters represent bank code. (Letters only, i.e. AAAA)

Next 2 characters represent country code. (Letters only, i.e. BB)

Next 2 characters represent location code (letters and digits, i.e. 1C)

Last 3 characters are optional that represents branch code (letters and digits (DDD)

Definition of IFSC code

Indian Financial System Code is shortly known as IFSC code, which is a unique identification code used to specifically identify the bank branch engaged in the digital money transfer system such as National Electronic Fund Transfer (NEFT) and Real Time Gross Settlement (RTGS) within India.

The code is a combination of 11 alphanumeric characters whose details are provided below:

First 4 characters represent bank code.

5th character is 0.

Last 6 characters are branch code.

All the bank branches within the country are assigned an IFSC code by the Central bank of India. The code is used by the inter bank fund transfer systems to proceed the message to the respective bank-branch.

Key Differences Between SWIFT code and IFSC code.

The important differences between SWIFT code and IFSC code are mentioned below:

SWIFT Code is an acronym for Society for Worldwide Interbank Financial Telecommunication Code. IFSC code is short for Indian Financial System Code

SWIFT code is a globally recognized code, used at the time of international credit transfer between banks and also when there is an exchange of messages between banks. IFSC code is a unique identification code of a bank-branch used for the purpose of digital money transfer.

The SWIFT code is approved by the International Organization for Standardization (ISO) Conversely, IFSC code is developed by Reserve Bank of India (RBI).

Only those banks can take part in an international wire transfer, which is SWIFT code enabled. As opposed to, IFSC code is provided to all the Indian bank branches.

The SWIFT code consists of 8 or 11 characters. Unlike IFSC code, that consists of 11 characters.

In international money transfers (SWIFT code) the fees charged is higher as compared to national transfers (IFSC code).

You can find SWIFT code in the bank’s website or the account statement while IFSC code can be found in Bank-branch cheque book and RBI website.

Conclusion

The basic difference between these two codes, is that SWIFT code is used when the transfer of funds between banks takes place internationally while IFSC code is used when there is a nationwide inter bank fund transfer.

The post Difference Between SWIFT Code and IFSC code appeared first on Key Differences.

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