Key Difference Between IFSC and SWIFT code

Swift Code and IFSC Code are codes used to identify banks uniquely and make fund transfers to their right destination. In this article, we will facilitate to understand the key differences between the IFSC and the SWIFT Code.

IFSC Code

IFSC code is used when fund transfers between banks occur within India's geographical boundaries. It is an alphanumeric code, that recognizes the bank branch taking part in the electronic fund transfer system. IFSC stands for Indian Financial System Code.

Define IFSC Code Structure

Let's understand the structure of the IFSC code. The code is a combination of 11 alphanumeric characters and the combinations are as below:

• The First four characters represent the bank code.
• The 5th character is 0.
• Last six characters are branch codes.

SWIFT Code

On the other side, SWIFT stands for Society for Worldwide Interbank Financial Telecommunication, and this is a cooperative non-profit organization, fully owned by its member banks. SWIFT code is used when the transfer between two banks happens internationally.

Define SWIFT Code Structure

The SWIFT code is a combination of 8 or 11 alphanumeric characters. The code structure is provided below.

• The first 4 characters show the bank code. (Letters only, i.e. AAAA)
• And, the next 2 characters represent the country code. (Letters only, i.e. BB)
• Next, 2 characters represent the location code (letters and digits, i.e. 1C)
• And the final 3 characters are optional and represent branch code (letters and digits (DDD)

Key Differences between IFSC and SWIFT Code

The below table depicts the major and key differences between the IFSC Code and the SWIFT Code.

Hope you are now able to understand the differences between the IFSC and SWIFT Code.