A bit on SEPA - IBAN & BIC

Posted on September 22nd, 2008 by Sanjit Anand | Print This Post | Email This Post

SEPA in system context have things which is really important.

1. IBAN Code
2. BIC Validation
3. SEPA customer credit transfer, based on the ISO20022 format (XML)

So lets see why IBAN and BIC is so important.Take a note, SEPA schemes use BIC and IBAN codes to uniquely identify bank accounts

IBAN (International Bank Account Number)

The IBAN is provided by the bank servicing the account.

It should not contain any spaces when it is stored electronically. When printed on paper, however, it is usually expressed in groups of four characters, the last group being of variable length.

It consists of:

• The ISO code (two letters) of the country in which the bank account is held and a two-digit check number;
• The domestic Basic Bank Account Number (BBAN) (up to 30 alphanumeric characters).

Total IBAN length may not exceed 34 characters.

BIC (Bank Identifier Code)

The BIC is the unique identifier for banks within the European Union.The BIC is regulated by ISO 9362

It consists of 8 or 11 characters, which include:

• A bank code (four characters)
• A country code (two characters)
• A location code (two characters)
• if applicable, a branch code (three characters)

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