IBAN's primary purpose would be to facilitate (i) domestic/cross-border inter-bank electronic payment, (ii) avoid routing errors in domestic/cross-border payments, (iii) facilitate straight through processing and (iv) enable making payment in a reliable manner as remitter can validate the beneficiary account number. .
This is being studied by a committee (Chairman: Shri Vijaya Chugh) which is looking at the entire gamut of bank account number system. A committee has also been constituted (Chairman: Shri. G. Padmanabhan) to recommend feasibility of paper based and electronic GIRO payment system, dove-tailing the existing payment system infrastructure.