Taxation & Compliance
Posted on Aug 8, 2025
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While receiving or sending money abroad, you might have come across the term IFSC Code or SWIFT code. Although both terms are used in the process of international transactions, they have very different meanings.
One common question that many people search on Google is: Is the IFSC code and SWIFT code the same?
The answer is No. Let’s break down everything to make it easier for you.
In this blog, we will learn what is a SWIFT and IFSC code?How are they different from each other? Various examples of SWIFT code and IFSC code. We will also cover their structures and usage.
What is an IFSC code?
People are often confused by the question, What exactly is an IFSC code?
Let's break it down first.
IFSC code stands for Indian Financial System Code. This code is a unique 11-character alphanumeric code. The main purpose of this code is to identify the branch of a particular bank in India. IFSC codes are issued by the Reserve Bank of India and play an important role in routing payments like-
NEFT
RTGS
IMPS
Whenever you are making a domestic transfer in India, you will need the recipient's bank’s IFSC code to ensure that the funds reach the right account.
Where is the IFSC code used?
The IFSC code is used to identify the exact branch of a particular bank where the recipient has the account. It is only used for domestic transfers within the country.
For example, if your recipient holds an account in the Andheri branch of Axis Bank in Mumbai, and the other recipient holds an account in the Juhu branch of Axis Bank in Mumbai, then the IFSC code of both banks will be different. The main purpose of the IFSC code is to route the payment to the right branch of a particular bank.
Source: EconomicTimes
Structure of an IFSC Code
An IFSC code is made up of 11-alphanumeric characters. The format is typically like-
Source: RBI
Let’s break down the above code-
The first four characters, for example, SBIN, represent the bank.
The 5th character is always 0, saved for future use.
The last 6 characters, for example, 123456, represent the branch code.
Where can you find the IFSC code of a bank?
Before sending out the payment, it is important to know the IFSC code of the recipient's bank. Here are several places where you can find the IFSC code:
Cheque Book- IFSC code is printed on every cheque leaf.
Passbook- The IFSC code is usually mentioned on the first page.
Bank’s customer support- If you are still unsure about the IFSC code, then call your bank
For example, if you are using SBI Bank, then you can log in to SBI Yono and go to the account details, which contain your IFSC code.
What is a SWIFT code?
When it comes to international wire transfers, the code that you will be required is not IFSC; it is the SWIFT code. SWIFT code is a globally accepted system for routing money between countries.
The full form of SWIFT code is Society for Worldwide Interbank Financial Telecommunication. SWIFT code is a secure messaging system used by banks worldwide to receive and send information about international transactions.
But one term that people often use in place of SWIFT code is the BIC code. BIC code stands for the Bank Identifier Code, and both terms are essentially the same.
So, if someone is asking for your bank’s BIC code, they are referring to the SWIFT code of your bank.
Where is the SWIFT code used?
Unlike the IFSC code which is used in domestic transfer, the SWIFT code is used for sending and receiving money internationally. It ensures that the international payments land safely in your account.
You will be asked to provide SWIFT code in the following situations:
While receiving international payments as a freelancer from platforms like Upwork or Fiverr.
Receiving international payment as an exporter.
Transferring or receiving money for personal expenses across borders.
Supposedly, if you are an Indian freelancer working with clients in the US or UK, to receive payments from them, you will have to give your SWIFT code for receiving international payments from them.
Structure of SWIFT code
A SWIFT code is made up of 8-11 characters, each part of the code conveying specific information about the bank and its location.
Source: Infinity SWIFT code finder
To know more about SWIFT code and its breakup, click here.
How does the SWIFT code work for international payments?
The SWIFT code system does not itself move the money; rather, it sends secure payment instructions between the banks using a standardised messaging format.
Here is how the SWIFT code system works:
The sender provides the bank with the recipient’s bank details, which include the SWIFT code as well.
The sender’s bank uses the SWIFT code to send a secure payment instruction to the recipient’s bank.
Based on the message received, the recipient’s bank processes the international payment, and then the amount gets credited to the recipient’s account.
Key differences between the SWIFT and IFSC codes
Although both SWIFT and IFSC codes are used for identifying bank branches while making international and domestic payments, they are fundamentally different in terms of usage, scope, and purpose.
Let’s break it down with the help of the following table:
Section | SWIFT | IFSC |
|---|---|---|
Full Form | Society for Worldwide Interbank Financial Telecommunication | Indian Financial System Code |
Purpose | Used for international wire transfers between banks globally | Used for domestic bank transfers within India |
Issued By | Issued by the SWIFT network (a global cooperative society) | Issued and regulated by the Reserve Bank of India (RBI) |
Format | 8 to 11 characters (e.g., SBININBBXXX) | 11 characters (e.g., SBIN0000456) |
Scope | Used by banks and financial institutions worldwide | Valid only for Indian bank branches |
Usage | Cross-border payments, forex settlements, export/import transactions | NEFT, RTGS, IMPS, UPI for domestic transfers |
Identifies | Specific bank and branch globally | Specific bank branch within India |
Who Needs It? | Freelancers, exporters, importers, foreign remitters | Indian customers sending or receiving money within India |
Can SWIFT and IFSC codes be used interchangeably?
No, both the codes serve different purposes, and you can not use them interchangeably.
Using the wrong code can lead to failed or returned payments, a delay in the process of sending or receiving international payments, or extra bank charges.
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FAQs
Are SWIFT code and BIC code the same?
Yes, SWIFT code and BIC code are the same thing. They are used interchangeably.
Can i use IFSC code for international wire transfer?
No, you cannot use IFSC code for international payments. IFSC code is used only for domestic payments in India.
Is IFSC and SWIFT code the same?
No, both SWIFT and IFSC code are different. IFSC code is used within India for domestic payments and the SWIFT code is used globally for international wire transfer.
