What Is a SWIFT Code?

A SWIFT code tells banks around the world which institution should receive a payment. When an overseas client sends money to you, their bank uses your bank's SWIFT code to route it. The ECB glossary describes the code as eight or eleven characters made of an institution code, a country code, a location code and an optional branch code. The code names the bank, so it is shared along with your account number and the name on the account. It does not identify your own account.

For example, an Indian copywriter sends an invoice to a client in Canada. The invoice lists the account name, account number, bank name and the bank's SWIFT code so the client's bank can route the payment.

• Receiving payments: A missing or wrong SWIFT code is a common reason an overseas payment is delayed or sent back. See why banks return inward remittances.
• Bank compliance: Banks that receive export proceeds follow the FEMA export rules (FEMA 23(R)/2026-RB). Correct bank details help the AD bank match the receipt to your invoice.
• Charges: Payments sent across several banks may carry deductions. Read SWIFT transfer charges in India for how charges can reduce the amount credited.
• Tax: The SWIFT code has no GST or income tax effect. It is only a routing identifier.

A SWIFT code works as an address for a bank. The sending bank reads it from the payment instruction and routes the message towards the bank it names.

1. The overseas client enters your bank's SWIFT code and your account details at their bank.
2. The sender's bank builds a payment message using that code.
3. If the two banks have no direct link, the message goes through a correspondent bank.
4. Your bank receives the message and matches it to your account.
5. The bank credits your account and records the inward remittance.
6. Your bank can issue a bank advice for the credit on request.

Share your bank's SWIFT code with your client together with your account number and the exact account name. Take the code from your bank, not from a search result.

1. Ask your bank for the SWIFT code of the branch that holds your account, or find it on the bank's official website.
2. Check whether the bank gives one code for all branches or a code for each branch.
3. Add the code to your invoice with the account name, account number and bank name.
4. Ask the client to copy the details exactly.
5. After payment, check the credit narration and match it with the invoice number.
6. Keep a note of the code with your other bank details for international payments.

A SWIFT code identifies a bank, while an IBAN identifies an account. The ECB glossary says an IBAN uniquely identifies an individual account at a specific financial institution.

• Account number: A SWIFT code is not an account number. It names the bank only.
• Same as IFSC: IFSC is used for domestic transfers in India, while SWIFT is used for international payments.
• One per customer: Customers of a bank share the bank's code. It is not specific to you.
• Always 11 characters: A BIC can be eight or eleven characters, according to the ECB glossary.

• BIC: The formal name of the SWIFT code.
• IBAN: An international account identifier used in many countries.
• SWIFT MT103: The message format that carries a customer payment.
• Correspondent bank: A bank that passes payments between two banks.
• 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: Business Identifier Code (BIC), BIC entry (checked 9 Oct 2026)
2. European Central Bank glossary: International Bank Account Number (IBAN), IBAN 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)