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Introduction to SWIFT Codes - What are they, Why it is important to send Money to India & Where to Find them
Monday, Jan 31, 2011
Swift money transfers are the easiest way of
sending money to India. Through this mode,
international transfer of money is possible
electronically. This kind of money transfer began
in 1974, when seven banks came together to form a
Society for Worldwide Interbank Financial
Telecommunication or SWIFT.
While sending money to India, it is important to
ensure that the money reaches the right recipient
and the right bank account. Bank Identifier Codes
or the BIC are identification codes given to
banks, which are essentially used for
international transfers. When the SWIFT was
formed, all international transactions became the
sole responsibility of this Society, which led to
these BICs becoming SWIFT Codes. All SWIFT codes
or BICs are alphanumeric addresses given to each
bank, which are usually between 8 and 11
characters in length. These codes are extremely
essential when sending money to India. It is
interesting to note that more than 209 countries
and 3000 financial institutions worldwide are
registered with the SWIFT for easy money
transfers.
SWIFT Codes are basically combinations of the bank
codes, which is four characters in length, the
country and location code, two characters each in
length, and branch code, which is three characters
in length. In most cases, the primary bank is
allotted a SWIFT code, at least initially.
However, in some cases, other branches may also be
allotted such codes. Where the length of the SWIFT
code is 8 characters, it is usually the primary
bank and where it is 11, it is a branch. It is
possible that some banks in India, especially
branches of the primary bank, do not have SWIFT
codes. Always ensure the length of the SWIFT code
before sending money to India via SWIFT transfers,
to avoid sending money to the wrong bank or
branch.
When sending money to India, the major advantage
of using the SWIFT code is that it is extremely
safe and secure. Moreover, when using these codes,
the transferor is assured that the recipient will
receive the money directly in his or her account,
thus making it extremely convenient. Through these
SWIFT codes, it is possible for the transferor
bank to identify the exact location of the
transfer and ensure that the transfer is done
correctly. Incorrect SWIFT codes will result in
your money being misplaced. Always be prepared
with the SWIFT and BIC Codes when sending money to
India through such electronic transfer modes.
When sending money to India, it is best to
remember that only those banks which are
registered with the SWIFT network or Society will
have the SWIFT codes for enabling transfers. Use
the name and address of the recipient bank to find
out whether it is registered with the SWIFT
network. Searching online, especially at the SWIFT
internet website, will help you find whether your
bank is registered or not and the code in
question. Alternatively, you could call or write
to your bank and ask for the SWIFT code before
sending money to India. Calling or writing to the
Trading or Securities Settlement or Wire Transfers
department in your bank will yield these numbers.
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