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?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.
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