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.
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.
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