An International Bank Account Number IBAN is an internationally accepted system by banks in different countries to identify other overseas bank accounts to which the money is transferred. IBAN facilitates a global money transfer with ease.
It allows you to exchange the required bank account details in a machine-readable form. This piece of information identifies the country, the bank, and the particular branch where the bank account is located. That is, when an Indian resident wants to send money to a country in Europe, they should be knowing the IBAN Number of the beneficiary.
IBAN has a special alphanumeric architecture. The number of alphanumerics in the IBAN number can range from a minimum of 5 to a maximum of Each number and alphabet in IBAN embeds different details such as country code, bank identification number, bank account number and other data used to process an international payment. The length of the IBAN number depends on the national standards of the country in which it is issued. Equity Mutual fund. Boost your returns from our latest financial news and tips!
Notification Settings X Time Settings. Clear My notification inbox. Clear Notification X Do you want to clear all the notifications from your inbox? Yes No. Settings X. It serves at least three vital functions when an individual makes or receives any kind of international payment between banks. An IBAN, or International Bank Account Number, includes various numeric identifiers, such as account number and country code, which help financial institutions process international payments more quickly and without errors.
As a result, bank accounts in the U. An IBAN number shows both the bank and a specific account at that bank. Prior to the international standardization of IBAN and SWIFT codes, payments between countries and continents would frequently end up in the wrong location, complicating the lives of everyone involved.
Payments that were made in error, or ended up in the wrong locations, would frequently require extra sums of money to correct these issues. Clearly, something had to be done. One of the major benefits of the SWIFT system is the large amount of information it easily transfers between financial institutions. Namely, a 4-letter bank code, a 2-letter country code, and a branch identifier composed of one letter and one number. Think of an IBAN as the general compass that points an international payment in the right direction.
But even with a functioning compass, one still needs a more detailed map of the terrain through a BIC branch code, etc. And of course, a BIC is important in helping to avoid post-transaction costs to fix a misdirected payment. An IBAN number has a series of alphanumeric characters, all of which represent an important part of the money transfer process.
The IBAN format is always the same for every country, although the number of digits may vary. For example, Norway uses 15 characters, while Liechtenstein uses
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