SWIFT code is utilized when the exchange between two banks happens globally. Then again, IFSC code is utilized when the exchange of funds are there between banks inside of the topographical limits of India. These terms are utilized generally as a part of keeping money exchange where one needs to transfer cash through electronic system. MICR is a magnetic technology used in cheques identification and operation. The principle contrast between these terms is that IFSC is required while transferring money within the nation and SWIFT code is required while transferring finances globally. There are prominent contrasts between SWIFT code and IFSC code which are examined in this article below.

SWIFT code

SWIFT codes have been introduced by International Organization of Standards (ISO) to encourage simple exchange of cash and sometimes messages between banks situated in distinctive areas of the world. SWIFT means “Society for Worldwide Interbank Financial Telecommunication.” A Swift code is comprised of 8 or 11 alphanumeric digits that give the location and identity of the bank. In this code fifth and sixth characters are held for the nation. The greater part of global interbank messages utilizes the SWIFT network. Business Identifier Codes (BICs, already Bank Identifier Codes) are prevalently known as “SWIFT codes”.

IFSC

The Indian Financial System Code named as IFSC is an alphanumeric code that interestingly recognizes a bank-office taking an interest in the two fundamental Electronic Funds Settlement Systems present in India that are ‘the Real Time Gross Settlement or RTGS’ and ‘the National Electronic Funds Transfer or NEFT’ Systems. IFSC remains for Indian Financial System Code and is needed whether you are utilizing RTGS, CEMS or NEFT, in which diverse payments frameworks are created by RBI. IFSC is an 11 digit code. If you are currently in India and want to exchange cash with one bank then onto the next inside of the nation, you can do it easily if you have any knowledge about the IFSC codes of both banks.

MICR

MICR is a code printed on cheques using Magnetic Ink Character Recognition Technology. Its function is identification of cheques for faster processing. MICR is a 9 digit code that uniquely identifies the bank and branch participating in Electronic Clearing System (ECS). MICR’s first 3 digits represent the city code which is aligned with the pin code used with postal addresses in India. The next 3 digits represent the bank code. Last 3 digits represent the branch code.

SWIFT Code vs. IFSC vs. MICR Code

Here are the contrasts between the SWIFT code, IFSC and MICR Code:

Acronym of

SWFIT code is a short form of “Society for Worldwide Interbank Financial Telecommunication.”

IFSC is short form of “Indian Financial System Code”.

MICR is a short form for the technology used in printing on cheques. It is “Magnetic Ink Character Recognition Technology”.

Meaning

An internationally perceived recognizable code utilized when there is need of global credit exchange in banks and when there is a transfer of messages between different banks is called as SWIFT code.

A code that particularly distinguishes a bank-office including in an electronic fund transfer framework in India is named as IFSC.

MICR is a code printed on cheques using magnetic ink.

Created by

SWIFT code is created by ISO (International Organization for Standardization).

IFSC is created by RBI (Reserve Bank of India).

Code:

SWIFT code is made up of 8 or 11 characters where first four character represent the bank code and in the form of letters, two characters after this represent the country code which is also in form of letters, the very next two characters show the location code and after this the three characters show the branch code which is optional.

IFSC is made up of 11 characters where the first four characters show the bank code, next to this is always a 0 and after that the last six characters show the branch code.

MICR is a 9 digit code in which the first 3 digits denote city code, middle 3 digits denote bank code and last 3 digits denote branch code.

Applied to

SWIFT code is applied to only those banks which are enabled with SWIFT.

IFSC is applied to all the banks working in India.

MICR code is used in all cheques. It makes the identification and transaction easy through Electronic Clearing System (ECS).

Fees

By exchanging money through SWIFT costs very high.

By exchanging money through IFSC costs less.

Found in

SWIFT code can be founded in the account statement or in bank’s websites.

IFSC can be founded in Reserve Bank of India and cheque book of bank branch.

MICR code can be found on all cheques in hand of customers and in circulation.

Examples

Some examples of SWIFT code are DEUTDEFF500, NEDSZAJJXXX, and DSBACNBXSHA etc.

Some example of IFSC are HDFC0000351, IOBA0000684, SBIN0006435, ICIC0007235 etc.

An example of MICR is 400002009.

Conclusion

From the above article we come to know that SWIFT code represents ‘Society for Worldwide Interbank Financial Telecommunication’ whereas IFSC represents ‘Indian Financial System Code’. SWIFT code is made up of 8 or 11 characters by ISO and IFSC is made up of 11 characters and is issued by RBI. SWIFT code is applied to only those banks which have their SWIFT code whereas IFSC is applied to all banks in India. Transferring of money through SWIFT costs high whereas through IFSC costs less. MICR is a character recognition code that helps in faster processing of cheques through identification and Electronic Clearing System (ECS). What is your point of view?