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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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