Have you ever come across the Bank payment details of University where you can find the Beneficiary Account name and Beneficiary account number and there will be code such Swift code / BIC code?
If yes, you will be thinking about how this Swift code is important while doing the fund transfer to abroad.
Now let us explain to you about swift code / BIC Code:
The full form of Swift code is Society for Worldwide Interbank Financial Telecommunication. It is also known as BIC code. It is a Business Identifier code as per the International Banking term. It will help to check Bank names and Financial institutions worldwide. Through Swift code you can find out from which country and from which bank the remittance has been received or transferred.
These codes are used particularly in International wire transfer from Bank to Bank. International Banks exchange their messages with these codes.
Now where you will be able to find the Swift code: You can find the Swift code in your International Bank statement or in Swift copy
Frequently asked Questions
1. Is Swift code is used for Local Bank transfer:
1. Swift code is not used for Local bank transfer. It is used only for International bank transfer. In India IFSC code is used to transfer the money locally between bank to bank.
2. How may digits in Swift codes:
2. It has 8 or 11 digits or alphabets. First, 4 letters representing the shortest form of Bank, Next 2 letters country of the bank where it is located, and remaining letters represent the Bank head office. Example: Swift code of Commonwealth Bank of Australia is CTBAAU2S here CTBA is a short name of Bank and AU is Country code of Australia and 2S is Bank head office location code.
3. If I mention wrong swift code whether the remittance will be delayed:
3. Yes, if the swift code is mentioned wrongly while doing the Wire transfer there will be delay in transfer and funds may return back resulting in charges that will be deducted from your account.
4. Swift code and Routing code are same:
4. No both are different codes but both will work similarly. Routing code usually used in the USA for local money transfer.
5. Swift code is unlike IBAN:
5. No both are different. But work the same job. IBAN pertains to Individual bank account of the person or entity both in local as well as international. They are frequently used in Gulf countries and European countries. Swift code pertains to bank branches for international money transfer. This is used worldwide.
6. How swift code helps banker:
It will identify the correct bank and correct country so that the remittance will hit the correct account without a problem.
7. While doing wire transfer is there need to mention both swift code and IBAN:
7. No, it differs from country to country. In the USA they will use only swift code and routing code but in European countries and gulf countries IBAN number is mandatory.