What is the difference between ifsc code and bic code

Funds are not physically transported using the SWIFT network, the codes simply convey payment instructions. IFSC codes facilitate the instant transference of funds from one bank account to another in India.

These institutions include banks, foreign exchange brokers, clearing houses, depositories, brokering institutes, trading houses and asset management companies. The IFSC code is also printed on cheques and bank statements. SWIFT codes are needed to process international money transfers as they are used to verify the financial institution s involved. IFSC codes are mandatory for money transfers from one Indian bank account to another.

Every bank branch will have a unique code and it is not possible for two IFSC codes to be the same. At MoneyTransfers. April is a journalist and full-time content writer for MoneyTransfers.

Over the last decade she has written for a number of different online and print publications. Having lived overseas in Canada and Vietnam, April hopes to see more of the world as soon as possible, with Japan at the top of her travel list. As a former expat, April has first-hand experience of managing finances from overseas. She enjoys writing about forex trends and the future of banking. Read time: 4 minutes. Compare Rates. To Spain. The code lets the other institutions know three main things the name of the bank, where the head office is located.

The code is made up of:. The code is usually made up of characters and is commonly made up such as the example given above: the name of the company and the city and country of the headquarters.

IFSC is a unique code and the code is of immense importance in carrying out the transactions in the banking sector.

It is printed in the check books or can be easily found online by searching the code of the bank branch. It consists of eleven characters and this code has been assigned by Reserve Bank of India for the identification of the bank branches. It uniquely identifies any bank branch in India. This code is of immense importance for carrying out the electronic payments in the country. Can I use Swift code of nearest branch to transfer money internationally.

If I want to receive inward remittance from the overseas, what should i Do? It is better not to use these codes for international transfer because these codes do not specify the country where the bank account is held. This is used to identify not only the bank but also the country and the location of the bank. Generally, they are 8 to 11 alphanumeric codes. These codes are used for the international transfer of money safely with the needed specifications of the bank with just the code.

They are also used to send encrypted messages between banks and other financial institutions. These 11 characters are divided into 4 parts. The first part with 4 letters identifies the bank, then the following 2 letters are used for identifying the country.

The third alphanumeric set specifies the bank location along with the fourth alphanumeric set specifying the branch of the bank. The last set of 3 alphanumeric characters can be omitted is the transfer is done through the primary office. Swift Code and Sort Code are codes used for bank transfers and identification of banks along with their specifications.

Sort Codes are used for domestic transactions within England and a few parts of Ireland. Swift Codes are used for international transfer and are registered with BIC.