What is the Difference Between IFSC Code and Swift Code?

The primary difference between an IFSC code and a SWIFT code lies in their purpose, scope, and usage. Here are the key differences:

1. Purpose:

• IFSC (Indian Financial System Code) code is used within the Indian banking system to identify individual branches for domestic fund transfers.
• SWIFT (Society for Worldwide Interbank Financial Telecommunication) code is used by banks and financial institutions worldwide to identify recipient banks and facilitate international transfers.

1. Scope:

• IFSC codes are specific to India's banking system and are used for domestic electronic fund transfers within the country.
• SWIFT codes are used internationally, with more than 11,000 financial institutions in over 200 countries utilizing them for initiating international payments.

1. Usage:

• IFSC codes are required for sending or receiving money from financial institutions within India.
• SWIFT codes are required for transferring money between banks in different countries.

1. Format:

• IFSC codes consist of 11 alphanumeric characters and provide information about the bank and branch within India.
• SWIFT codes can range from 8 to 11 alphanumeric characters, divided into 4 sections: bank code, country code, location code, and branch code.

In summary, SWIFT codes are used for international transactions, ensuring proper routing of funds between banks worldwide, while IFSC codes are specifically designed for domestic fund transfers within India.

Comparative Table: IFSC Code vs Swift Code

Here is a table highlighting the differences between IFSC Code and Swift Code:

IFSC Code is a unique identification code for all bank branches in India, used for domestic electronic fund transfers within the country. On the other hand, Swift Code is an internationally recognized code used for international credit transfers and communication between financial institutions worldwide.