The International Bank Account Number (IBAN) is a globally accepted standard format for identification of bank accounts, that is specifically designed to facilitate banking transactions and minimize the time taken mostly for foreign and local funds transfer transactions without any error.
IBAN is already implemented in more than 50 countries (including the E.U., Saudi Arabia, Kuwait, and the U.A.E.). IBAN implementation can result not only in bringing more efficiency in cross border transactions and transfers, including remittances sent by overseas Pakistanis from IBAN-compliant countries but will also result in facilitation of domestic electronic transfers.
It shall however be noted that IBAN is not a new account number. IBAN is only representing the user’s existing account number in an internationally recognizable ISO standard format. IBAN doesn’t require any changing or replacement of existing account numbers.
Benefits of IBAN usage:
- IBAN will help faster and secure transfers of funds without any error.
- IBAN will bring more efficiency in the banking payment processing by enabling the payments\clearing systems to electronically validate account numbers without any manual intervention.
- IBAN implementation will help in bringing more efficiency in remittance related transactions as a significant percentage of these transactions are rejected due to inaccurate account numbers information.
- Account validation at remitting institution due to IBAN’s check digit mechanism will significantly reduce errors related to account numbers.
FAQS
What is IBAN?
The International Bank Account Number (IBAN) is an international standard for identifying bank accounts. It is not a new account number. The main objective is to expedite the automatic fund transfer process and enhance the precision, safety, and speed of payment transactions. The IBAN remains valid as long as the account is in active status.
What is the format of IBAN for U Bank?
IBAN for U Bank consists of 24 characters as per the following composition:
- The first two letters will be Country Code (e.g.: PK for Pakistan)
- The next two digits will be check digits (validates the correctness and integrity of the bank account)
- The next four letter will be SWIFT Code of the Bank: UMBL
- The next one digit will be zero: 0
- The next four digits will be your branch code: 1234
- The next one digit will be zero: 0
- The last eleven digits will be the customer’s account number: eg: 12345678901
Example:
Existing 11-digits U Bank account number: 12345678901 & Branch code: 1070
Equivalent IBAN number: PK10UMBL0107012345678901
Do I need an IBAN?
An IBAN will be necessary for all bank customers who make fund transfers through Pakistan. If you have multiple bank accounts, you will require an IBAN for each one.
How can I get my IBAN?
IBAN number is printed on the Cheque Book and the Statements of Account sent to customer. Alternatively, you can contact your nearest U Bank branch or call helpline Toll Free: 0800-82265 within Pakistan, for International callers +92 51 111-282-265
Will transfers of funds internationally be the only uses for the IBAN?
No, both local and international money transfers can be made using the IBAN.
Is using IBAN going to incur any additional fee/charges?
No, there is no additional fee/charges using IBAN.
