Meaning of SWIFT (Society for Worldwide Interbank Financial Telecommunication ) Codes of Banks

Introduction

• SWIFT (Society for Worldwide Interbank Financial Telecommunication ) code is a standard format of Bank Identifier Codes (BIC) and it is unique for particular bank

• The registrations of SWIFT Codes are handled by Society for Worldwide Interbank Financial Telecommunication (“SWIFT”) and their headquarters is located in La Hulpe, Belgium

• SWIFT is the registered trademarks of S.W.I.F.T. SCRL with a registered address at Avenue Adèle 1, B-1310 La Hulpe, Belgium

• A swift code or BIC code is a combination of numbers and digits which signifies the identification of your bank

• The swift code is also known as the ISO 9632

• An internationally-recognized identification code for banks around the world
• A non-profit organization developed by European bankers to provide a secure international communication system between banks
• SWIFT has also developed a list of bank identifier codes (BIC) which are assigned to any bank involved in international money transfers
• A SWIFT code identifies the name of the bank and the city and country in which the branch is located
• each and every branch of any bank has its own swift code

Structure of SWIFT Code

• SWIFT code consists of 8 or 11 characters
• When 8-digits code is given, it refers to the primary office.
• First 4 characters - bank code (only letters)
• Next 2 characters - ISO 3166-1 alpha-2 country code (only letters)
• Next 2 characters - location code (letters and digits) (passive participant will have "1" in the second character)
• Last 3 characters - branch code, optional ('XXX' for primary office) (letters and digits)

Uses

• used when transferring money between banks, particularly for international wire transfers
• used for exchanging messages between banks
• wire transfers are comprised of 8 or 11 alphanumeric characters.
• this code helps in transfer of money from one bank to another bank
• SWIFT codes are most commonly used for international  The International Organization of Standardization (IOS) was the authoritative body that approved the creation of SWIFT codes
• one does not have to enter all details of the bank, like banks name address etc.
• just fill in the swift code and the amount to be transferred to the computer system and the money will reach its destination immediately

SWIFT CODES OF BANKS IN NEPAL