Send money overseas has become a dire necessity, with more and more relations and friends moving out to countries abroad. Hence money sent from one country to other through an electronic fund transfer system is named SWIFT. Society for Worldwide Interbank Financial Telecommunications or SWIFT. It provides safe and secure financial transactions anywhere across the world. In this system, payments are sent in the form of Swift codes.
What are Swift codes?
Are you looking for the SWIFT code? It’s frequently referred to as a SWIFT number, which is a standard format for Business Identifier Codes (BIC). This is how banks and financial institutions all across the world are identified. It’s similar to an international bank code or ID in that it tells you who they are and where they are.
These codes are most commonly used for international wire transfers and SEPA payments, although they are also used for other purposes. These codes are also used by banks to communicate with one another.
The following elements make up a SWIFT code, which can have between 8 and 11 digits:
- Only letters are allowed in the first four characters, which are used as bank codes.
- The next two characters, which are only letters, describe or indicate the country code.
- The following two characters can be any combination of numbers and letters. These are the codes for services that are based on location.
- The last three characters of the code are optional and can be either numbers or letters.
What happens if the swift code goes wrong?
The bank might deduct the amount from your account only to be reversed back to your account on not finding the right swift code. From the above information, it quite evident that Swift transfers can only be made with Swift codes.
How does the swift transfer work?
The Swift network of financial institutions is used to move money from one country to another. Each financial institution is assigned an 8- or 11-character quick code, often known as a bank identity code. Financial institution transfers take the form of messages that are sent to the receiver’s account in order for the money to be credited to his or her account. Swift is a messaging system that sends money across borders in the form of codes to the receiver’s account so that it can be credited as soon as possible.
Each bank is given an eight- or eleven-character designation called a bank identification by Swift. The Swift code is similar to the IFSC code, which is used for domestic interbank transactions, whereas the IFSC code is used for international transfers. If someone wishes to send money overseas from India, for example, they’ll need the latter’s bank account number as well as the destination bank’s Swift code. The Swift code informs the receiving bank in that country of the transfer in real-time, making it easier for it to clear.
What is the requisite information required for the international transfer of funds?
- Full name and address of the receiver
- Bank details of the receiver with an account number and the type of account
- A SWIFT code is to be provided to identify a specific bank during an international transaction,
- An IBAN is necessary to identify an individual account in an international transaction.
All you have to do ….is share the details of the receiver
- Bank account number of the receiver/university/ hospital
- Postal address of the bank
- SWIFT code that will be given to you on your transaction
- Required amount & choose the currency
Swift transfers have some meager handling and transfer charges incurred in the form of service fees which often vary from institution to institution and country to country. The estimated time for Swift transfers is 2-5 working days but might be longer due to the number of transfers between banks and countries. The swift transfer network is secured and spread across many countries and financial institutions across the globe.
