What is IBAN Number?
14 May, 2025
Synopsis
IBAN stands for International Bank Account Number, and is a code required while conducting international fund transfers.
IBAN is typically made up of up to 34 characters, comprising details such as country and bank code and account number.
IBAN is similar to the IFSC code banks use for domestic fund transfers within India.
The global banking sector has evolved by leaps and bounds. Where you once had to wait for days for cheques to clear and be credited into your account, today, you can make online inter and intra-bank, domestic and international transfers effortlessly. Online remittance services allow you to send money to banks in all corners of the world. For some such transactions, you need a unique transaction code called IBAN number. Let’s understand what IBAN number is, how it works and other vital facts.
What is IBAN Number?
IBAN stands for International Bank Account number – a standard numbering system or code used for identifying bank accounts across the borders of any given country. The objective behind introducing IBAN was to facilitate cross-border electronic bank payments. Overseas banks typically use IBAN to recognise bank accounts, while allowing account holders to send and receive payments from abroad.
The IBAN number is not a substitute for a bank account number. Instead, it provides extra information about your bank account, helping banks to identify your account. As such, when you conduct a fund transfer online to or from abroad, you must provide both, the IBAN and the account number, along with the regular bank account details to ensure a seamless fund transfer.
How Does an IBAN Number Work?
As an internationally recognisable code, IBAN helps avoid routing errors when an international fund transfer is initiated. It essentially validates the account numbers of the beneficiaries, ensuring that payments are made accurately. The number comprises all the details required to validate or identify an account in which the funds are to be transferred.
The characters in an IBAN represent a sequences of letters and numbers that helps a sender correctly identify the beneficiary’s bank account, while ensuring that the funds are credited in the right account.
IBAN Number Format – Breaking Down What IBAN Looks Like
A typical IBAN number is made up of up to 34 characters, but may vary from one country to another. The code comprises digits and letters representing several vital components needed for an international money transfer.
For instance, the first 2 characters in the IBAN code are 2 letters representing the country code (e.g. FR for France), sometimes referred to as the location code. The next two digits are called the check digit code, which are followed by additional 4 digits/letters representing the bank identifier code. The bank identifier code is followed by yet another sequence of 6 or more numbers called the branch code or sort code, while the last 8 or more digits represent the beneficiary’s basic bank account number (BBAN), used to locate a specific bank and account.
Note that the IBAN format remains the same for all countries, but the number of digits in each IBAN number may vary. For instance, the IBAN numbers used for money transfers to Norway may comprise only 15 characters while Liechtenstein’s IBAN numbers comprise 21 characters. In any case, the maximum digits/characters for IBAN across all countries does not exceed 34.
Uses/Importance of IBAN
The most significant role IBAN plays is that it IBAN facilitates communication between overseas banks. Here are some other critical uses of IBAN, signifying its importance:
The primary use of IBAN is facilitating fund transfers across international borders – from domestic to overseas bank accounts and vice versa.
By using IBAN numbers, banks can ensure that funds are directed into the correct bank accounts of the intended beneficiaries.
Using IBAN also allows banks to track the transfer and ensure that both senders and beneficiaries do not have to deal with delivery issues or follow-ups.
IBAN is also important since it mainly focuses on processing international payments with utmost security while complying with the necessary security protocols.
IBAN facilitates cross-border transactions more rapidly than most other overseas fund transfer methods, proving extremely vital during financial emergencies.
IBAN Numbers and India
Not all countries, including India, have adopted IBAN for international fund transfers. While you can transfer funds overseas, you can do it through overseas remittance services offered by your bank. As for domestic fund transfers, you conduct the same using your beneficiary’s IFSC code.
Open HDFC Bank Accounts for Smooth Overseas Fund Transfers
If you wish to conduct an overseas fund transfer from India, you can do so with a little assistance from your bank. At HDFC Bank, we enable you to send money abroad. You can contact our customer care helpline or head to your nearest HDFC Bank branch and speak to our representatives. You can also open your HDFC Bank account online. Visit the bank’s website today.
*Disclaimer: Terms and conditions apply. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances.
