What Is an IBAN?

An IBAN is a longer, standard form of a bank account number. It was designed for international use, according to the ECB glossary. The code contains the bank identifier of the servicing institution, so one string names both the bank and the account. Clients in countries that use IBAN often ask for it by habit. An Indian exporter's bank account is normally identified by an account number, an IFSC and a SWIFT code, so ask your bank what it gives for foreign payers. Do not make up an IBAN from your account number.

For example, a web developer in Chennai receives a payment form from a Dutch client with a field marked IBAN. The developer asks the Indian bank what to enter, and sends the account number, bank name and SWIFT code if no IBAN exists.

• Receiving payments: Payers' systems may refuse a form with the IBAN field empty. Knowing what to write there prevents payment delays.
• Bank compliance: The AD bank links each receipt to an export under the FEMA export rules (FEMA 23(R)/2026-RB). Accurate account details help the bank match the credit to the invoice.
• Fraud risk: Copy bank details only from your bank. Never accept a changed IBAN from an email alone.
• Tax: An IBAN has no GST or income tax effect. It is an account identifier.

An IBAN works as a single identifier that carries the bank and the account. The payer enters it, and the payer's bank uses it to reach the right account.

1. The account holder gets the IBAN from their bank, where the country uses IBAN.
2. The account holder shares it with the payer along with the account name.
3. The payer enters the IBAN in their payment form.
4. The payer's bank reads the bank identifier and the account from it.
5. The payment is routed to the account at the named institution.
6. The receiving bank credits the account.

Ask your own bank what identifiers it gives for foreign payments, then match the client's form to them. Do not guess or build an IBAN yourself.

1. Read the client's form to see whether IBAN is required or optional.
2. Ask your bank for the account details it advises for international payments.
3. If the bank gives no IBAN, tell the client the account number, bank name and SWIFT code.
4. Ask whether the client's bank can send the payment without an IBAN.
5. Check the details back with the client before the first payment.
6. Keep a record in line with bank details for international payments.

An IBAN identifies an account, while a SWIFT code identifies a bank. The ECB glossary describes the BIC as an identifier for institutions.

• Same as SWIFT: An IBAN and a SWIFT code are different identifiers, and many payments need both.
• Self-made: An IBAN is issued through the bank. Do not add letters in front of your account number.
• Needed everywhere: Not every country uses IBAN, so a form asking for one may accept an account number instead.
• Tax code: An IBAN is not a tax or regulatory registration.

• SWIFT code: The identifier for a bank in international payments.
• BIC: The formal name for a SWIFT code.
• SEPA transfer: A euro transfer scheme used between European banks.
• Bank details for international payments: Which details to share with overseas clients.
• Inward remittance: Foreign currency received into India.

Every rule and definition on this page is linked to its official source, checked on the dates below.

1. European Central Bank glossary: International Bank Account Number (IBAN), IBAN entry (checked 9 Oct 2026)
2. European Central Bank glossary: Business Identifier Code (BIC), BIC entry (checked 9 Oct 2026)
3. FEMA (Export and Import of Goods and Services) Regulations, 2026, FEMA 23(R)/2026-RB, Part on realisation of export proceeds (checked 9 Oct 2026)