Are you confused about IBAN and SWIFT codes when sending money to India? You're not alone. Many NRIs struggle to understand the difference between these two banking identifiers, often wondering which code they should provide for successful transfers.
IBAN and SWIFT represent the two dominant standards for international money transfers, yet they serve completely different purposes. SWIFT codes, also known as BICs (Business Identifier Codes), help identify specific banks and their branches worldwide. IBANs work differently altogether – they identify individual bank accounts rather than the banks themselves.
Most global wire transfers rely on the SWIFT system, which as of 2025 connects over 11,000 financial institutions across more than 200 countries and territories. Understanding how these banking codes work directly impacts how smoothly your money transfers proceed, whether you're sending funds regularly or managing occasional transfers to India.
What is an IBAN?
IBAN stands for International Bank Account Number, a standardized numbering system designed to identify individual bank accounts across international borders. Unlike local account numbers, an IBAN provides all the information needed for processing cross-border financial transactions seamlessly.
An IBAN works as your account's global passport. This unique identifier consists of up to 34 alphanumeric characters that follow a specific structure:
- Country code: A two-letter code indicating where your account is located (like "GB" for the United Kingdom)
- Check digits: Two numbers that validate the IBAN's correctness before processing
- Bank identifier: Code identifying your specific financial institution and sometimes the branch
- Basic Bank Account Number (BBAN): Your account number follows country-specific formats
The IBAN creates a standardized format for account identification across different countries without replacing existing account numbers. Each nation maintains its particular national IBAN format registered under the ISO 13616 standard.
Note: Indian banks do not issue IBANs. However, if you're sending money from a country like the UK, UAE, or Germany, you'll be required to enter the recipient's Indian account number (not IBAN) along with the bank’s SWIFT code.
Let's understand this with an example. A UK IBAN might look like: GB98RBOS16605010796587, where "GB" is the country code, "98" represents check digits, "RBOS" identifies Royal Bank of Scotland, followed by the sort code and account number.
What is a SWIFT code?
SWIFT codes serve as the backbone of global banking communications, particularly for international money transfers. SWIFT (Society for Worldwide Interbank Financial Telecommunication) is an organization founded in 1973 that created a standardized messaging system allowing banks to communicate securely across borders. These codes are often called BIC (Bank Identifier Code), and both terms refer to the same thing.
When you're sending money to family in India, you'll need the recipient's SWIFT/BIC code to ensure your funds reach the correct financial institution. This unique identifier consists of 8–11 characters that contain crucial information about the receiving bank.
A SWIFT code breaks down into four specific parts:
- Bank code: Four letters that identify the bank (e.g., "UNCR" for UniCredit Banca)
- Country code: Two letters representing the country (e.g., "IT" for Italy)
- Location code: Two letters or numbers identifying the city/location (e.g., "MM" for Milan)
- Branch code: Optional three characters that specify a particular branch (if absent, "XXX" is used, indicating the head office)
For instance, the Italian bank UniCredit in Milan has the SWIFT code: UNCRITMM.
With over 11,000 member institutions worldwide, SWIFT remains the leading communication network for secure international money transfers. As an NRI, understanding SWIFT codes is essential because they're typically required for all international money transfers to India.
IBAN vs SWIFT: Key Differences Every NRI Should Know
Note: Indian banks do not use IBANs. You will only need SWIFT and local account details when transferring funds to India.
How Does SWIFT Code Help NRIs to Send Money to India?
For NRIs sending money to India, the SWIFT code is a key part of the transaction. It acts like a global address that helps international banks identify the correct recipient bank in India. No matter where you're sending from, whether the U.S., UAE, Canada, or the UK, using the right SWIFT code ensures your money reaches the intended bank safely and without delays.
To send money correctly, you’ll typically need:
- Recipient’s full name (exactly as it appears on their bank account)
- Bank account number (usually 11–16 digits)
- SWIFT/BIC code of the recipient’s bank
- IFSC code (may also be required by some Indian banks or transfer services to help route the funds to the correct branch internally, especially when crediting INR accounts)
SWIFT codes connect banks across borders, making international payments quick and secure. Unlike IBANs used in Europe, India continues to rely mainly on SWIFT codes for receiving money from abroad.
Here's how the process usually works:
- Collect the recipient’s bank details, including the correct SWIFT code
- Choose a remittance provider; this could be your bank or a money transfer service like Wise, Remitly, or ICICI Money2India
- Fill in the details carefully and double-check account numbers and codes
- Complete identity verification, especially for transfers exceeding ₹7 lakh, which may attract Tax Collected at Source (TCS) under current RBI and income tax regulations as of 2025
- Track your transaction using the reference number provided
Always verify the SWIFT code directly from the recipient bank’s website. Banks may change codes due to branch updates or regulatory changes. Using outdated code can delay or cancel the transfer.
Conclusion
Understanding the difference between IBAN and SWIFT codes is important for NRIs sending money to India. Since India does not use the IBAN system, you need the correct SWIFT code along with the recipient’s full name and account number to ensure your funds reach the right bank. SWIFT codes act as a universal address, connecting banks worldwide and enabling secure, accurate international transfers.
One common mistake NRIs make is using outdated or incorrect banking details, especially SWIFT codes, which can delay or block transfers. Always verify the recipient’s current bank details directly from official sources before sending money. Taking this simple step helps your remittance reach your loved ones in India quickly and safely. If you want to learn more about how you can send money to India, refer to this blog.
Frequently Asked Questions
Q1. What's the difference between IBAN and SWIFT codes for international transfers?
IBAN identifies a specific bank account, while SWIFT codes identify the bank itself. SWIFT codes are used globally, including in India, whereas IBAN is primarily used in Europe and some other regions.
Q2. How do SWIFT codes help in sending money to India?
SWIFT codes ensure your money reaches the correct Indian bank, regardless of which country you're sending from. They act as a universal identifier for financial institutions in the global banking network.
Q3. What information do I need to provide for an international transfer to India?
You'll typically need the recipient's full name (as it appears on their account), their account number, the SWIFT code of their bank, and sometimes the branch IFSC (Indian Financial System Code).
Q4. How can I avoid mistakes when sending money to India?
Always verify the recipient's banking details, especially the SWIFT code, on their bank's official website before initiating a transfer. Double-check all information to ensure accuracy and prevent delays in your remittance.
