Difference Between SWIFT Code and IFSC Code

1. It is used for international fund transfers. 

1. The SWIFT code plays an important role in international fund transfers and remittances. 

1. A SWIFT code has eight to eleven characters with letters and numbers. 

1. It is generated by the Society for Worldwide Interbank Financial Telecommunication network. 

IFSC Code

1. IFSC code (Indian Financial System Code) is used to identify bank branches within India. 

1. It is used for fund transfers within India.  

1. An IFSC code is integral for interbank transactions in India. It includes NEFT (National Electronic Fund Transfer), RTGS (Real Time Gross Settlement), IMPS (Immediate Payment Service), etc. 

1. An IFSC code has 11 characters with numbers and letters. 

1. The RBI manages the IFSC code, and it is also a part of NEFT (National Electronic Fund Transfer System). 

Features of SWIFT Code

A SWIFT code is a unique code to identify banks worldwide. It is to ensure secure and smooth communication between the banks during international transactions. SWIFT codes are also known as the Bank Identifier Code (BIC), an alphanumeric code used by numerous countries worldwide. This allows you to find the accurate bank where the transfer is to take place and make sure that the transaction is safely conducted. 

How to Identify a SWIFT Code?

A SWIFT code consists of 8 to 11 characters that include letters and numbers. To identify a SWIFT code, you need to understand what the numbers and letters signify. Here is an example of a SWIFT code: 

BBBB-CC-DD-456

The first four letters denote the abbreviation of the bank’s name. The next two letters signify the country code of the bank location. The next two letters represent the location code of the bank headquarters. The last three numbers signify the branch code where the transaction is meant to take place. 

Where to Find a SWIFT Code

To find the SWIFT code, you can check the bank documents or account details from your online banking profile. Another way to find a SWIFT code is to use the digital SWIFT search tool by entering your bank details. 

Benefits of SWIFT Code

The SWIFT code is an important part of finance worldwide. The benefits of SWIFT code are many. The major advantage of SWIFT code is that it makes international money transfers safe and secure. It ensures the transactions are done accurately without any errors. It also speeds up the transaction, making it convenient for users. 

Features of IFSC Code

An IFSC code is the Indian Financial System Code, which is used to identify bank branches within India. The code makes the transactions among Indian branches convenient and secure. It eliminates potential risks while transferring money across India. IFSC codes are a mandatory requirement in fund transfers in India. The Reserve Bank of India (RBI) uses IFSC codes for electronic fund transfer within the country. 

How to Identify an IFSC Code?

An IFSC code consists of eight to eleven characters that indicate certain identifying factors. Given below is an example of an IFSC code: 

BBBB-456789

Similar to the SWIFT code, the first four letters of the IFSC code signify the name of the bank in abbreviation. The last six numbers denote the branch code where the transaction is to take place. 

Where to Find the IFSC Code?

To find the IFSC code, you can check your bank documents, such as passbooks and checks, or your online banking profile. If you still can't find it, you can visit your branch and obtain the code. 

Benefits of the IFSC Code

IFSC codes play a crucial role in banking. It is primarily concerned with the security of domestic money transactions in India. The unique code ensures that the money reaches the right account and that there is no scope for errors or fraud. It also makes transactions easy and faster. IFSC codes are needed for all kinds of online money transfers, which makes them an important part of money transfer.