1/1/2024 0 Comments Code swift share ourWe, at IndusInd Bank, for instance, have a vast correspondent network allowing you to receive funds in 16 different currencies. The Final WordĪs SWIFT transfers are more convenient when your bank has established relationships with other banks, it’s best to transfer money with a bank that has partnered with SWIFT. Note: In the case of international transactions via SWIFT, sometimes currency conversion charges are applied too. Step 4: The beneficiary’s bank then credits the funds to the beneficiary’s account. Step 3: The intermediary bank asks the beneficiary’s bank to transfer funds to the beneficiary’s account and provides them with the required details. Step 2: The intermediary bank debits funds from the commercial account of the sender’s bank, applies transfer charges and credits the funds to the commercial account of the beneficiary’s bank. Step 1: The sender’s bank debits the funds from the sender’s account and asks the intermediary bank to transfer the funds to the beneficiary’s bank. ![]() Case 2: The Banks Do Not Have a Previously Established Relationship To help you understand better, we’ve listed out the BIC/ SWIFT codes for a few large banks from around the world: Scotiabank (Canada): NOSCCATTXXX. These last 3 digits are optional, though. If not, the transaction usually occurs via another intermediary bank. XXX: 3-digit branch code that specifies a particular branch of the bank, usually the bank’s headquarters. Since both the banks have a direct relationship, transferring the funds is easier. Step 4: The beneficiary’s bank finally credits this to the beneficiary’s account. Step 3: The sender’s bank credits the amount to the commercial account of the beneficiary’s bank. Step 2: The sender’s bank debits the funds from the sender’s account. Step 1: The sender’s bank sends a message via SWIFT to the beneficiary bank that includes the payment instructions and the sender’s contact details. Case 1: The Banks Have An Established Relationship The SWIFT money transfer process varies slightly depending on whether the two participating banks have an established relationship or not. The code essentially acts as an address to deliver SWIFT messages, making the fund transfer possible. This helps them identify the financial institution, country, location, and even an individual branch participating in the transaction. The SWIFT Code/BIC CodeĮvery financial institution under the SWIFT network is assigned a unique SWIFT code of 8 to 11 characters. This means you can practically transfer SWIFT money from anywhere around the world. With over 11,000 partner financial institutions spread over 200 different countries, SWIFT is currently the most prominent international payment network. It instead communicates transaction orders from one institution to the other via codes. A SWIFT code is a Business Identifier Code (BIC) used by banks and payment providers when making international transfers. The SWIFT Networkįirst things first, SWIFT banking doesn’t really transfer money across borders. Let’s look at how SWIFT makes seamless international money transfers possible. For perspective, on 10th November 2021, a whopping 41.36 million financial messages were transferred through SWIFT! It’s a massive messaging network that banks use to accurately, swiftly, and securely share and receive information, such as bank details or money transfer instructions. ![]() But have you ever wondered what happens behind the scenes? Well, most international transactions worldwide are facilitated by SWIFT or the Society for Worldwide Interbank Financial Telecommunications. Need to transfer money abroad? Today, most of us can do that online or by simply walking into the bank. Posted on Sunday, February 6th, 2022 | By IndusInd Bank
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