Money Transfers to India- Importance of SWIFT Code
If you send money to your family in India through a bank, how does it reach them? How do banks communicate money transfer instructions to each other? The answer is- through the SWIFT code. This code makes sure the money goes where it should be going.
Initially, banks used TELEX as the system for international money transfers. This was before internet became a huge part of our lives. Today, SWIFT code is used by banks for money transfers to India or any other country.
This code is used by member banks for sending instructions to each other related to transfer of funds. Each bank has a unique code that includes numbers and letters. Once the money transfer instruction is loaded into the SWIFT system of the bank, it gets conveyed to the other institution. As soon as this process is over, the money gets transferred from the correspondent bank. In the event that the sending bank has accounts at the receiving bank, the money transfer is done through the institution’s own accounts.
The SWIFT codes and SWIFT network are of great importance. These have made international transfers secure and fast. It has become more reliable and cheaper because now banks can easily communicate instructions to each other. This means less expensive remittances for the senders.
The best way of finding the SWIFT code of your bank or any other bank is to check their official website. When sending money through online banking, it is very important to know the SWIFT code of receiving bank. It is also important to find out ways to get the best exchange rate to India because competitive rates will ensure that the recipient is getting maximum of what you are sending. It will also make your international remittance cost-effective.