SWIFT Code Explained

5 min read Bank Utils

What SWIFT Code Means

SWIFT stands for Society for Worldwide Interbank Financial Telecommunication. A SWIFT code, also called a BIC (Bank Identifier Code), is an 8 or 11-character alphanumeric code that identifies a specific bank and optionally a specific branch for international wire transfers. It is the addressing system that allows banks in different countries to find each other.

How the Code Is Structured

The first four characters are the bank code (e.g., HDFCINBB for HDFC Bank). The next two are the ISO country code (IN for India). The next two are the location code (BB for Mumbai). An optional three-character branch code follows if absent, it defaults to XXX meaning the primary office. So HDFCINBBXXX is HDFC Bank's primary Mumbai office.

SWIFT vs IFSC

IFSC is used for domestic electronic fund transfers within India's interbank network. SWIFT is used for international transfers that cross borders. If someone abroad is sending money to your Indian bank account, they need your SWIFT code, account number, and usually your bank's address. IFSC is irrelevant for international transfers and vice versa.

When You Need a SWIFT Code

You need a SWIFT code when receiving money from overseas salary from a foreign employer, remittance from family abroad, freelance payments from foreign clients, or international investment returns. You also need it when your Indian bank sends money internationally for imports, study abroad fees, or foreign investments under the Liberalised Remittance Scheme.

Correspondent Banks and Intermediary Codes

International transfers often do not go directly from one bank to another. They pass through intermediary correspondent banks that have bilateral relationships. When your bank does not have a direct relationship with the sending bank, the transfer hops through one or two correspondent banks, each identified by their SWIFT code. This is why international transfers sometimes take 25 business days.

How to Find Your Bank's SWIFT Code

Your bank's SWIFT code is available on its official website, on your internet banking portal in the account details section, and on your bank statement. For Indian banks with multiple SWIFT codes for different branches, the main branch or nodal branch SWIFT code is typically used for receiving international transfers.