International bank Account Number (IBAN)
The International Bank Account Number (IBAN) is a standardized alphanumeric code used to identify a bank account in international transactions. It was introduced to facilitate efficient and accurate processing of cross-border payments. The IBAN consists of a country code, a two-digit checksum, and a unique combination of numbers and letters that identify the specific bank and account. The country code indicates the country where the bank is located, while the remaining characters provide the bank and account identification details. The purpose of the IBAN is to ensure that international payments are directed to the correct bank and account by providing a standardized format that can be easily recognized and processed by financial institutions worldwide. It helps minimize errors and delays in processing international transactions and improves the efficiency of cross-border payments.