Banks are an essential part of economic life in every field today. The world is all about money and as such banks by default has become part and parcel of our daily lives. With the hint of modernization touching the areas of banking, new facilities has been introduced besides conventional lending and money saving. With the development in financial division in addition to the advancement in latest technology, banking sector has come a long way for service providence across time and geographical boundaries.
Be it international or national, bank to bank transfer has been made easier due to these improvements. The advanced transfer system has led common men to perform secure and safe transactions. One of the biggest plus is that it no longer consumes bulk amount of time. Transfers can be usually done within a few hours usually. But the criteria is that the sender has to have enough funds in his account so that when it reaches the receiving end’s bank, it is cleared at the same instant and is made available for access. It is important that both the banks at the sending and receiving ends open a mutual account otherwise transactions will have to be made to a third subsequent bank that possesses a mutual account.
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When it comes to International Bank Transfers, Swift code or BIC code is linked involuntarily. You now must be inquisitive about what these codes do. SWIFT code is the abbreviated form of Society for Worldwide Inter bank Financial Telecommunication. It is also known as ISO 9362 or SWIFT BIC or BIC code of SWIFT Id. It serves as the standard format of Bank Identifier Code which is produced at the time of inter bank transfers and other inter bank communication. These alpha-numeric codes are generally approved by the International Standard Organization to help represent a bank.
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You probably must be wondering how it works. The first will be the approaching stage. The sender will have to approach to the bank he wants to send the money from. Other transaction requirements are the receiver’s account number and the Swift code of the bank where the receiver has the account. Finally the sender bank will send a message to the receiver bank and request for payment according to the instructions put out.
The entire procedure consumes a few hour for completion of the transfer and the funds to reach their destination account. But it may take few days, if any technical snag or other problem arises. Note that the banks in service for the transaction will collect the payment for the service provided. Thus, the overall amount received by the recipient will be lesser than the sent amount.
Check out this: Different Types of Banking Transactions