{"@context":"https:\/\/schema.org\/","@type":"BlogPosting","@id":"https:\/\/www.indusind.com\/iblogs\/savings-account\/swift-and-ifsc-code-differences\/#BlogPosting","mainEntityOfPage":"https:\/\/www.indusind.com\/iblogs\/savings-account\/swift-and-ifsc-code-differences\/","headline":"Swift and IFSC Code: Differences","name":"Swift and IFSC Code: Differences","description":"SWIFT and IFSC codes are two types of codes essential for financial transactions. While SWIFT codes are used for international financial transactions, IFSC codes are used when transferring money from one bank to another.\u202f  Each type of code has its distinct characteristics and is used in different contexts. It is important to know the differences...","datePublished":"2024-09-05","dateModified":"2024-09-05","author":{"@type":"Person","@id":"https:\/\/www.indusind.com\/iblogs\/author\/vinayak\/#Person","name":"Vinayak","url":"https:\/\/www.indusind.com\/iblogs\/author\/vinayak\/","image":{"@type":"ImageObject","@id":"https:\/\/secure.gravatar.com\/avatar\/83880c90630f0d98ec7d461acb74bdf6?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/83880c90630f0d98ec7d461acb74bdf6?s=96&d=mm&r=g","height":96,"width":96}},"publisher":{"@type":"Organization","name":"IndusInd","logo":{"@type":"ImageObject","@id":"https:\/\/www.indusind.com\/iblogs\/wp-content\/uploads\/logo-2.png","url":"https:\/\/www.indusind.com\/iblogs\/wp-content\/uploads\/logo-2.png","width":201,"height":86}},"image":{"@type":"ImageObject","@id":"https:\/\/www.indusind.com\/iblogs\/wp-content\/uploads\/Swift-and-IFSC-Code-Differences-min.jpg","url":"https:\/\/www.indusind.com\/iblogs\/wp-content\/uploads\/Swift-and-IFSC-Code-Differences-min.jpg","height":288,"width":764},"url":"https:\/\/www.indusind.com\/iblogs\/savings-account\/swift-and-ifsc-code-differences\/","about":["Savings Account"],"wordCount":1217,"keywords":["Savings account"],"articleBody":"SWIFT and IFSC codes are two types of codes essential for financial transactions. While SWIFT codes are used for international financial transactions, IFSC codes are used when transferring money from one bank to another.\u202f Each type of code has its distinct characteristics and is used in different contexts. It is important to know the differences between a SWIFT code and an IFSC code to utilise them in the right manner. Read on to know more.  What is a SWIFT code?SWIFT stands for Society for Worldwide Interbank Financial Telecommunication. A SWIFT code is a unique identification code assigned to banks and financial institutions worldwide. It is a global standard for identifying banks when one wants to transfer funds internationally.\u202f The SWIFT code is alphanumeric and has 8 to 11 characters. They represent specific details about the bank, its location, and its branch. Now that you have a basic idea of what a SWIFT code is, let\u2019s try to understand IFSC codes. What is an IFS Code?\u00a0IFSC, or Indian Financial System Code, is a unique identification code assigned to bank branches within India. This code is crucial for making electronic fund transfers from one domestic bank to another via a savings account or other sources.\u202f IFS Codes are alphanumeric and have 11 characters. They represent specific details about the bank branch, including its location and unique identifier.\u202f If you are clear on the meaning of a SWIFT code and an IFSC code, let\u2019s dive into the differences between both.\u202f Key Differences Between SWIFT Codes and IFSC CodesThe following table lists the differences in detail:\u202f Parameters SWIFT code\u202f IFSC\u202f Full form\u202f SWIFT stands for Society for Worldwide Interbank Financial Telecommunication. IFSC Code stands for the Indian Financial System Code. Usage\u202f International fund transfers, international bank communication, global remittances, international trade\/business payments, and so on.\u202f Domestic electronic fund transfers, digital bill payments, online banking, loan disbursements, and so on.\u202f Purpose\u202f Helps ensure safe international money transfers Makes sure that funds across different countries and financial institutions are routed accurately Helps in expediting the transfer. Used to locate branches within India’s banking network Enables seamless transfer of funds between accounts within the domestic banking system  Helps the Reserve Bank of India (RBI) track financial transactions.\u202f  Accessibility\u202f Not available easily; can be provided by the recipient bank during international transfers; an individual\/ entity will need to reach out to their bank to figure out how to find their SWIFT code.\u202f Widely accessible and can be found on a bank’s website, printed on cheques or passbooks, or by directly contacting the bank; can also be found by carrying out online searches.\u202f  Time required for settlement\u202f Transactions carried out through a SWIFT code may have a higher settlement time, depending on international time zones and currency exchange rates.\u202f Transactions involving an IFSC Code may have a shorter settlement time, requiring not more than a few minutes or hours.\u202f Code example\u202f Usually looks like XXXX – YY – ZZ – 123  Usually looks like XXXX- 123456 Now that you have the answer to \u2018Is a SWIFT code and an IFSC code the same thing?\u2019, let\u2019s understand an illustration of a SWIFT transfer. Understanding How a SWIFT Transfer Works\u00a0Imagine an Indian student studying abroad who needs financial assistance from their family in India. Here’s how the SWIFT transfer can work in this scenario: 1. The family gives payment instructions to their bank in India along with the recipient bank\u2019s SWIFT code.\u202f 2. The sender’s bank debits funds from the family’s account. 3. Funds get credited to the commercial account of the beneficiary’s bank abroad. 4. Finally, the beneficiary’s account receives the funds. If the banks have a direct relationship, the transfer is smooth. Otherwise, an intermediary bank may be involved. Read more: How Does a Swift Money Transfer Work? IndusInd Bank is a member of the SWIFT organisation. It has a wide network of correspondent banking relationships with 250+ world\u2019s top banks. So, whether it is transferring money via SWIFT or opening an online bank account, IndusInd Bank is your reliable banking partner.\u202fStart banking with us today!\u00a0\u00a0Disclaimer: The information provided in this article is generic and for informational purposes only. It is not a substitute for specific advice in your circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct\/indirect loss or liability incurred by the reader for making any financial decisions based on the contents and information.\u00a0Share This:"}