What is SWIFT Code?

SWIFT code (also known as a Bank Identifier Code – BIC) is a unique identification code assigned to banks and financial institutions worldwide. It’s used to securely transfer money internationally between banks.

Full form: Society for Worldwide Interbank Financial Telecommunication (SWIFT).
Structure: A SWIFT code usually contains 8 to 11 characters:
First 4 characters → Bank code
Next 2 characters → Country code
Next 2 characters → Location code
Last 3 characters (optional) → Branch code


Example:
SWIFT code: HDFCINBBXXX
HDFC = Bank Code (HDFC Bank)
IN = Country (India)
BB = Location (Mumbai)
XXX = Branch code (main branch)

Why is SWIFT Code Internationally Used?

The SWIFT network is the global standard for international money transfers. Here’s why it’s so widely used:
Unique Global Identification – Every bank has its own SWIFT code, ensuring that money is sent to the correct institution.
Security & Reliability – SWIFT provides a highly secure messaging system for international transactions.
Global Standardization – With over 11,000+ banks and institutions in 200+ countries using SWIFT, it has become the universal language for cross-border payments.
Faster Processing – It helps banks communicate quickly and efficiently, reducing errors in money transfers.
Transparency & Tracking – Each SWIFT message has details of sender, receiver, and transaction, making it easy to track international payments.