Know everything about the SWIFT Code

Introduction

The SWIFT code is a financial messaging system that uniquely identifies a bank or it’s branch and enable smooth international wire transfers across the World. Generally, it is an 8- digit or 11- digit character code. The SWIFT stands for “Society for Worldwide Interbank Financial Telecommunication”. It is also known as BIC code or ISO 9362. Some of the examples are as follows:

1. AXISINBBXXX (for Axis Bank).

2. BARBINBBXXX (for Bank of Baroda Bank)

3. HDFCINBBXXX (for HDFC Bank)

4. ICICINBBXXX (for ICICI Bank)

5. SBININBBXXX (for SBI Bank)

Note that, “XXX” in above code will be replaced with the specific branch code, they are just specimen for basic understanding.

Historical Background

Although Telex technology was used as cross-border transactions but during 1970s, a lack was felt for cross-border payments system which will fast, secure and reliable apart from present Telex technology; this need was solved by the introduction of SWIFT. In 1973, fifteen countries and their 239 banks got together to solve this common problem and addressed the question, “how to communicate about cross-border payments”. They formed a cooperative entity, “the Society for Worldwide Interbank Financial Telecommunication”, headquartered in Belgium and introduced SWIFT system for cross-border transactions. This system became a global financial messaging service and a common language for international financial messaging. [Read More....]

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