SWIFT Code vs. IFSC Code — What's the Difference?
By Tayyaba Rehman & Fiza Rafique — Published on October 22, 2023
SWIFT Code identifies banks in international transactions, while IFSC Code is used for domestic bank identification in India.
Difference Between SWIFT Code and IFSC Code
Table of Contents
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Key Differences
SWIFT Code stands for the Society for Worldwide Interbank Financial Telecommunication code, a global standard for identifying international banks. IFSC Code, or Indian Financial Systems Code, is specific to India and identifies individual bank branches for electronic funds transfer within the country.
In the world of international finance, SWIFT Code plays a pivotal role in ensuring that transactions between banks across borders are smooth and error-free. IFSC Code, on the other hand, has a domestic focus, aiding in the efficient and accurate processing of electronic transfers between bank branches within India.
A SWIFT Code typically consists of 8 or 11 characters and can provide insights into the bank's name, country, and sometimes the specific branch. IFSC Code, in contrast, is an 11-character code, with the first four representing the bank and the last six identifying the specific branch.
While both codes aim to streamline and secure financial transactions, their scopes are distinct. SWIFT Code facilitates international banking communications, whereas IFSC Code is instrumental in India's domestic banking transactions.
For someone looking to make an international wire transfer to a bank in India, both SWIFT Code and IFSC Code might be required. The SWIFT Code would help in identifying the receiving bank on an international level, while the IFSC Code would pinpoint the specific branch within India.
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Comparison Chart
Purpose
Identification for international bank transactions.
Identification for domestic electronic transfers in India.
Scope
Global.
India-specific.
Length
Usually 8 or 11 characters.
Always 11 characters.
Comprising Elements
Bank's name, country, and sometimes branch.
Bank's name and specific branch.
Usage
International wire transfers, messaging between banks.
Domestic electronic funds transfers and payments in India.
Compare with Definitions
SWIFT Code
Can be 8 or 11 characters long.
Always double-check the SWIFT Code's length and format before using.
IFSC Code
First four characters represent the bank's name.
The IFSC Code SBIN0000800 indicates it belongs to the State Bank of India.
SWIFT Code
Used for global interbank communication.
Ensure you have the correct SWIFT Code before initiating the transfer.
IFSC Code
Ensures accurate and efficient domestic transfers.
Using a wrong IFSC Code can misroute the payment.
SWIFT Code
Ensures smooth cross-border banking transactions.
Using an incorrect SWIFT Code can delay the transaction.
IFSC Code
11-character code identifying bank branches.
Each branch has a unique IFSC Code to distinguish it.
SWIFT Code
Helps in identifying bank's country and branch.
The SWIFT Code provided indicates the bank is located in France.
IFSC Code
Essential for transactions like RTGS and NEFT in India.
Before initiating an NEFT, ensure you input the correct IFSC Code.
SWIFT Code
A standard for identifying international banks.
To make an international payment, you'll need the beneficiary's SWIFT Code.
IFSC Code
Used for electronic funds transfers within India.
To transfer money domestically, you need the recipient's IFSC Code.
Common Curiosities
What is the primary purpose of an IFSC Code?
The IFSC Code is used for identifying bank branches for electronic funds transfers within India.
How many characters does a SWIFT Code have?
A SWIFT Code can have either 8 or 11 characters.
Is the IFSC Code used for international transactions?
No, the IFSC Code is specific to domestic transactions within India.
What does the SWIFT Code stand for?
SWIFT Code stands for the Society for Worldwide Interbank Financial Telecommunication code.
Why is the SWIFT Code important for international wire transfers?
The SWIFT Code identifies banks in international transactions, ensuring smooth and error-free transfers.
Is the SWIFT Code unique to each bank branch like the IFSC Code?
Not always. While SWIFT Codes can specify branches, some banks have a general SWIFT Code not tied to any branch.
What happens if I use an incorrect IFSC Code for a transfer?
Using an incorrect IFSC Code can misroute or delay the transfer, and you might have to initiate corrective measures.
Can I identify the country of a bank using its SWIFT Code?
Yes, the SWIFT Code provides insights into the bank's country and sometimes its branch.
What does the IFSC Code represent?
The IFSC Code represents the bank's name and its specific branch within India.
Can two bank branches have the same IFSC Code?
No, each bank branch in India has a unique IFSC Code.
Do all banks around the world have SWIFT Codes?
No, only banks involved in international transactions have SWIFT Codes.
Why is the IFSC Code essential for electronic payments in India?
The IFSC Code ensures accurate identification of the bank branch, enabling efficient electronic transfers.
Where can I find a bank's SWIFT Code or IFSC Code?
Both codes are often found on bank statements, passbooks, or the bank's official website.
Are SWIFT Codes and BIC (Bank Identifier Codes) the same?
Yes, SWIFT Code and BIC refer to the same code used for international bank identification.
Are there any alternatives to the SWIFT Code for international banking?
While SWIFT Code is widely used, some regions or banks might use other systems or codes for international transactions.
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Written by
Tayyaba RehmanTayyaba Rehman is a distinguished writer, currently serving as a primary contributor to askdifference.com. As a researcher in semantics and etymology, Tayyaba's passion for the complexity of languages and their distinctions has found a perfect home on the platform. Tayyaba delves into the intricacies of language, distinguishing between commonly confused words and phrases, thereby providing clarity for readers worldwide.
Co-written by
Fiza RafiqueFiza Rafique is a skilled content writer at AskDifference.com, where she meticulously refines and enhances written pieces. Drawing from her vast editorial expertise, Fiza ensures clarity, accuracy, and precision in every article. Passionate about language, she continually seeks to elevate the quality of content for readers worldwide.
