SWIFT Code – Full form
The Full form for SWIFT is Society for Worldwide Interbank Financial Telecommunications.
Why SWIFT Code is required?
As all of you know, IFSC (Indian financial system code) is required in bank to bank money transactions within India.
It is a bank and branch identifier code. It is used for all the banks within India.
Same as, A SWIFT code is required in transferring funds internationally.
How was SWIFT Introduced?
So, A cooperative society was founded in 1973 named as Society for Worldwide Interbank Financial Telecommunications ( SWIFT ) for providing a global payment system that helps in financial transactions between banks world wide.
A code was formed for international transactions, that is known as SWIFT CODE. It is also known as BIC ( Bank Identifier Code ) worldwide.
SWIFT is used in international transactions, it is required to identify banks world wide. It consists of 8-11 characters .
Let’s Understand SWIFT Code
This code of 11 characters helps to identify which country’s bank and branch it is and where it is located.
XXXX CC LL BBB
XXXX – It indicate Bank code (4 letters)
CC – It indicate country code (2 letters)
LL – Represents Location code ( 2 letters OR digits )
BBB – Represents Branch code ( 3 letters OR digits )
Example
Let you have to transfer money in Sydney, Australia in COMMONWEALTH BANK OF AUSTRALIA,
CTBAAU2S XXX
This 11 character SWIFT will be required.
Thanks for reading this article. Hope you found it very insightful and eye opener.
For more such blogs, visit Bharatpaisa.com
Please comment your questions and feedback below.