RBI proposes: Indian alternative to SWIFT Financial Messaging System:
The Reserve Bank of India (RBI) proposes to take Structured Financial Messaging System (#SFMS), the Indian normal for domestic monetary messaging for centralised fee methods — International.
This may very well be a regional alternative to the worldwide monetary messaging system Swift, which has been the topic of Western sanctions.
Backed by the communication medium of INFINET, SFMS is the Indian standard for domestic financial messaging for centralised payment systems (#NEFT & #RTGS). The feasibility of providing membership/technology of #INFINET to other jurisdictions shall be explored. INFINET is brief for Indian Financial Network — a closed consumer group for the Indian banking and monetary sector.
In the wake of the sanctions blocking the use of SWIFT for transactions with #Russia, the target of the SFMS ensures non-repudiation and safety in messaging, enabling monetary transactions of massive worth. This messaging expertise has a use case that’s related to Swift. The problem could be in getting many nations to take part.
RBI in its recently released ’Payment Vision Document 2025, out lined various activities to be undertaken during the period up to 2025. A key goalpost of these activities is #internationalisation, apart from #integrity, #inclusion, #innovation and #institutionalisation.
