Main Difference between IFSC Code And Swift Code
Main difference between swift code and ifsc code is, swift code is needed when transaction is occurring between international banks. And IFSC Code is needed whenever inter bank transaction is happening in the banks of INDIA.
SWIFT Code vs IFSC Code
The purpose of both codes are same but the difference is between when and where they are being used. To Understand the key difference, one should know everything about both the terms, swift code vs ifsc code.
About SWIFT Code
The Full form of SWIFT is Society for worldwide interbank financial telecommunication.
SWIFT codes are a mixture of different kinds of characters and numbers and are used to identify the branch codes of the banks. These codes are also known as Bank Identifier Codes or Business identifier codes (BIC).
The Main Purpose of A SWIFT code is to identify a particular branch of a particular bank. These codes are mostly used in International Transactions.
Actually SWIFT is the organization or society which provides the secure and reliable environment to the financial institutions like banks to transfer funds internationally. SWIFT also sales software and services to this kind of institutions.
SWIFT Does not provide the service of fund transfer instead they provides the information and payment order of fund transfer which the financial situations takes under consideration and settle after.
Read more about Swift codes here.
About IFSC Code
The Full Form Of IFSC Code is Indian Financial System Code. This is the code used for various transaction occurs between the banks of india. Its called Inter bank Transaction from one bank to another.
The code is a mixture of 11 numbers and numeric characters whose details are given below:
- First four characters is the bank code.
- The 5th character is 0 and reserved by RBI for future use.
- Last six characters represents branch code.
If anyone is having account in SBI Then the ifsc code would be something like this – SBIN0123456. In this example SBIN is the bank code of State Bank Of india. And 123456 Could be a branch code of particular branch.
All the branches of all the banks in india have the IFSC code which is provided by the Central Bank of India (CBI). The Code is used when inter bank fund transfer is taking place. The Message of fund transfer and identification of branch occurs through IFSC Code.
Bank IFS Code is used by the NEFT & RTGS (basically electronic fund transfer systems) systems to route the messages from initiation banks or branch to the destination banks/branches.
Person can find IFSC Code of any bank and any branch through the Reserve Bank Of India Website.
Key Differences Between SWIFT code and IFSC code.
The important differences between SWIFT code and IFSC code are mentioned below:
- SWIFT Code is Stands for Society for Worldwide Inter bank Financial Telecommunication Code. IFSC code is Stands for Indian Financial System Code
- SWIFT code is a globally recognized code, used at the time of international credit / Fund transfer between banks and also when there is an exchange of messages between banks. IFSC Code is a unique identification code of a bank-branch used for the purpose of digital money transfer.
- The SWIFT code is approved by the International Organization for Standardization (ISO) Conversely; IFSC code is developed by Reserve Bank of India (RBI).
- Only those banks can take part in an international wire transfer, which is SWIFT code enabled. As opposed to, IFSC code is provided to all the Indian bank branches.
- The SWIFT code consists of 8 or 11 characters. Unlike IFSC code, that consists of 11 characters.
- In international money transfers (SWIFT code) the fees charged is higher as compared to national transfers (IFSC code).
- You can find SWIFT code on the bank’s website or the account statement while IFSC code can be found in Bank-branch chequebook and RBI website.
So that was everything i could write and i could find about swift code vs ifsc code. If you have any further information regarding this topic or if you feel like sharing some info with us then you can comment down below or you can email us at [email protected].