Know about SWIFT Code – its format and uses
Society for Worldwide Interbank Financial Telecommunication (SWIFT)
The Society for Worldwide Interbank Financial Telecommunication (SWIFT) provides a network that enables financial institutions worldwide to send and receive information about financial transactions in a secure, standardized and reliable environment. SWIFT also sells software and services to financial institutions, much of it for use on the SWIFT Net Network.
SWIFT was founded in the 1970s. In 1973, 239 banks from 15 countries got together to solve a common problem: how to communicate about cross-border payments. The banks formed a co-operative utility, the Society for Worldwide Interbank Financial Telecommunication, headquartered in Belgium. SWIFT went live with its messaging services in 1977, replacing the Telex technology that was then in widespread use.
SWIFT’s messaging services support more than 11,000 financial institutions around the world and have systemic importance for the global economy.
Chairman- Yawar Shah
India was 74th Nation to join SWIFT Network.
SWIFT Code is a standard format of bank Identifier code. This code is used particularly in International transfer of money between banks.
A majority of FOREX related message are sent to correspondent banks abroad through SWIFT.
SWIFT Code consist either 8 or 11 characters
When code is of 8 digit, It is referred to primary office
1st four digits – bank code
Next two digits – country code
7th and 8th digits– location code
Last three digits– branch code (optional).