Is BIC code the same as SWIFT code? How exactly is it used in business international remittances? 

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Is it required for inward or outward remittances? In this blog post we answer the most frequently asked questions on BIC code and where it is used by businesses while making international payments from India

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Let’s dive deeper.  

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What is BIC code in India?

What is the business identifier code in a bank?

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In India, a BIC (Bank Identifier Code) code is the same as a SWIFT code. It is used to identify specific banks and their branches for international transactions, ensuring accurate routing of funds. The BIC code is an internationally recognized standard for identifying banks in global financial communications.

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• Regulatory Compliance: Indian banks are required to adhere to international standards for financial transactions. 
• Real-Time Transactions: The adoption of real-time payment systems in India, like the Immediate Payment Service (IMPS), is supported by BIC codes for cross-border transactions. These codes ensure that international remittances are processed swiftly and accurately.

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Who needs a BIC code? 

In the context of business international payments, a BIC (Bank Identifier Code) is needed by:

1. Businesses: To ensure accurate routing of funds when making or receiving international payments from suppliers, clients, or partners.
2. Banks: To correctly identify each bank and branch involved in processing international transactions, facilitating communication and fund transfers.
3. Financial Service Providers: To handle cross-border transactions and ensure correct processing for investment, insurance, and other financial services.
4. Exporters and Importers: To manage payments for goods and services, ensuring that funds are transferred securely and efficiently between global trade partners.
5. Corporate Treasurers: For managing and coordinating international cash flows, payments, and receipts across different currencies and financial systems.

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How do I get my business identifier code?

To obtain a Business Identifier Code (BIC) for your company, follow these steps:

1. Contact Your Bank: Reach out to your bank or financial institution. They can provide your BIC code or guide you through the process of obtaining one.
2. Register with SWIFT: If your business requires its own BIC code, you may need to register with SWIFT (Society for Worldwide Interbank Financial Telecommunication). This typically involves applying through SWIFT's official website and meeting their requirements.
3. Consult with Financial Advisors: Financial or banking advisors can assist you in acquiring a BIC code, especially if your business involves frequent international transactions.
4. Check Existing Documentation: If your business already conducts international transactions, the BIC code might be listed in your bank statements or previous transaction documents.
5. SWIFT Directory: Use the SWIFT directory online to check if your bank or institution is already listed and identify their BIC code if applicable.

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Are BIC and IFSC code the same?

How is a BIC code formatted? What is an example bank BIC code in business outward remittance from India?

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BIC Code Formatting

A BIC (Bank Identifier Code) follows a specific format:

1. Length: 8 to 11 characters.
2. Structure:
   • Bank Code: The first 4 characters are letters and represent the bank’s name.
   • Country Code: The next 2 characters are letters indicating the country where the bank is located.
   • Location Code: The following 2 characters (letters or digits) specify the city or location of the bank's head office.
   • Branch Code (optional): The last 3 characters (letters or digits) denote a specific branch of the bank. If not specified, it defaults to the main branch.

Example BIC Code

For business outward remittance from India, an example of a BIC code is:

• SBININBBXXX

Here’s what each part of the code represents:

• SBIN: State Bank of India
• IN: India
• BB: Mumbai (Location Code)
• XXX: Main branch (Branch Code, optional)

This BIC code helps in accurately routing international transactions to the State Bank of India’s branch in Mumbai.

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