Is SWIFT Code and IFSC Code Same? Key Differences, Usage & Purpose

The highly advanced technological scenario in the world presently can significantly be reflected in the banking industry. Today's interconnected world showcases fast domestic, as well as international financial transactions, where you might have come across terms like Swift code and IFSC code. 

These codes play crucial roles in ensuring a safe and secure transaction process. However, these differ at certain points. So to get the answer to - is Swift code and IFSC code same, read further and learn more about these in detail.

Key Differences Between Swift Code and IFSC Code

The following shows the key difference between IFSC code and Swift code:

What is Swift Code?

A Swift code refers to the Society for Worldwide Interbank Financial Telecommunication, which is a unique code to identify and locate banks worldwide. It ensures secure communication among financial institutions across the world during international fund transfers.

Swift code is a crucial requirement to ensure that the funds are transferred to the designated financial institutions, making sure there are no risks of misrouting.

This is generated by the Society for Worldwide Interbank Financial Telecommunication (SWIFT) network and is used by all the regulatory authorities for a smooth and secure international fund transfer across different countries and multiple currencies.

Swift Code Usage & Purpose

Swift codes are used when making an international transfer of funds. This unique code helps in verifying the identity of the banks, which acts as a safety measure to ensure a safe financial transaction.

Hence, the Swift code is also called the BIC or Bank Identifier Code, which is an alphanumeric code used by more than 200 countries and 11,000 institutions in the world. 

The system can check and process the code to detect the designated bank where the transfer is meant to be made. So, whenever you plan a transfer of funds internationally you will be asked for a BIC code or Swift code.

Swift Code Example

A Swift code is an alphanumeric code which consists of 8 to 11 characters, each of them representing certain identifying factors. Here is an example of the format of a Swift code:

AAAA - BB - CC - 123

Where the first four letters denote the title of the bank, which is generally the abbreviated form of the financial institutions.

The next two letters represent the county code where the bank is located.

The other two letters denote the location code of the financial institution, where its headquarters is located.

The last three numbers represent the branch code, that is the specific branch of the designated branch where fund transfer is meant to be made.

How to Find Swift Code?

To find your Swift code, you can check the documents related to banking such as bank statements. You can also check bank account details from your online banking profile.

However, if you are still unable to locate the Swift code, you can also use the digital BIC or SWIFT search tool through which you can get your Swift code by entering a few essential details such as your bank location, country that you live in etc.

What is the IFSC Code?

An IFSC refers to the Indian Financial System Code, which is a unique alphanumeric code to identify specific bank branches that are located within the jurisdiction of India. Hence, this code ensures safe and secure fund transfers within the Indian banking system.

IFSC code is a crucial requirement since it facilitates verifying the identity of the designated banks. Hence, it ensures there are no chances of potential risks while transferring funds across banks within India.

Therefore, whenever you are initiating any fund transfer domestically, you will be asked to provide certain crucial details of both the receiver bank and the sender bank. Among these details, the IFSC codes of both banks would be a mandatory requirement.

IFSC Code Usage & Purpose

Since IFSC codes facilitate verifying the identification of the banks, this is used by financial institutions to locate the specific bank branches while transferring funds. These are also effectively used by the Reserve Bank of India (RBI) as a code for electronic fund transfers within the country.

The primary purpose of an IFSC code is also to ensure smooth fund transfer across different financial institutions. However, unlike the Swift code, IFSC codes are only designated for the banking industry within India. It does not involve any global transaction and is solely designed to monitor domestic transactions.

IFSC Code Example

An IFSC code is an alphanumeric code which consists of 8 of 11 characters, each of them representing certain identifying factors. Here is an example of the format of an IFSC code:

AAAA - 123456

Where the first four letters denote the title of the bank, which is generally the abbreviated form of the financial institutions.

The last six numbers represent the branch code, that is the specific branch of the designated branch where fund transfer is meant to be made.

How to Find the IFSC Code?

To locate your IFSC code you can check the documents related to banking such as bank statements, Passbook and Cheque issued by your Bank’s Branch. You can also check bank account details from your online banking profile. You can even get your IFSC code on your bank's cheque book and passbooks.

However, if you are still unable to find your IFSC code, you can always consider contacting the bank branch or visiting it in person and resolving your queries there.