SWIFT Code vs IFSC Code

SWIFT codes are alphanumeric codes used by the Society for Worldwide Interbank Financial Telecommunication network, when identifying the bank location, country, and branch number of an international transfer.

An Indian Financial System Code (IFSC code) is an alphanumeric code used to identify bank branches within the National Electronic Funds Transfer (NEFT) network. The NEFT network is an electronic funds transfer system monitored and maintained by the Reserve Bank of India (RBI).

The format of SWIFT codes can range from 8 to 11 alphanumeric characters and they are divided into 4 categories to separate each of the different details they refer to: address, country and branch number of the bank.

An example of a SWIFT Code: AAAABBCCDDD

AAAA: Bank code. These 4 letters usually look like a shortened version of the bank name

BB: Country code. These two letters represent the country the bank is in

CC: Location code. These two characters will indicate where the bank’s head office is located

DDD: Branch code. The last three characters will indicate the specific branch of the bank

Taking the form of 11-characters, IFSC codes are split into 3 sections: the first 4 alphabetic characters represent the bank's name, the 5th character is typically zero (0) as a way of reserving this space for future utilisation, and the final 6 characters (a mix of alphanumeric characters) represent the branch.

An example of an IFSC code: The Reserve Bank of India’s IFSC code is RBIS0CBICER

RBIS: the bank’s name, the Reserve Bank of India

0: reserved for future use

BICER: the bank’s branch code

The SWIFT network facilitates the sending and receiving of secure messages between banks and financial institutions in order to complete payment instructions. Funds are not physically transported using the SWIFT network, the codes simply convey payment instructions.

IFSC codes facilitate the instant transference of funds from one bank account to another in India.

The SWIFT network is utilised by over 200 countries around the world, and more than 11,000 financial institutions use SWIFT codes to initiate international payments. These institutions include banks, foreign exchange brokers, clearing houses, depositories, brokering institutes, trading houses and asset management companies.

IFSC codes are used by electronic payment settlement systems in India, such as Real-time Gross Settlement (RTGS), National Electronic Funds Transfer (NEFT) and Centralised Funds Management System (CFMS).

SWIFT codes can be accessed via bank statements, online banking accounts or by contacting the specific bank directly and ask for the SWIFT code.

Searching through the RBI website’s list of banks and codes is one way to find the IFSC code you need; or you can contact the bank directly and ask for the code. The IFSC code is also printed on cheques and bank statements.

SWIFT codes are needed to process international money transfers as they are used to verify the financial institution(s) involved.

IFSC codes are mandatory for money transfers from one Indian bank account to another. Every bank branch will have a unique code and it is not possible for two IFSC codes to be the same.