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      Question

      A SEBI-regulated entity performing cross-border

      transactions uses a BIC (Business Identifier Code), commonly known as a SWIFT Code. In an 8 or 11-character BIC, which characters specifically identify the location/city of the financial institution?
      A The first 4 characters Correct Answer Incorrect Answer
      B The 5th and 6th characters Correct Answer Incorrect Answer
      C The 7th and 8th characters Correct Answer Incorrect Answer
      D The last 3 characters Correct Answer Incorrect Answer
      E The 3rd and 4th characters Correct Answer Incorrect Answer

      Solution

      SWIFT stands for Society for Worldwide Interbank Financial Telecommunications. A BIC (Business Identifier Code) or SWIFT code follows a standardized format (ISO 9362) consisting of 8 or 11 characters. The structure is broken down as follows: ·        First 4 characters: Bank code (only letters).

      • Next 2 characters: Country code (ISO 3166).
      • Next 2 characters (7th & 8th): Location/City code.
      • Last 3 characters (Optional): Branch code.
        As per SWIFT Standards, this ensures that messages are routed to the correct geographic hub.

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