Society for Worldwide Inter-bank Financial Telecommunication (SWIFT) is a Cooperative Non-profit making organization established under Belgian law and with its Headquarter at Brussels. How this Financial Telecommunicatio

Society for Worldwide Interbank Financial Telecommunication (SWIFT): SWIFT is an Acronym for Society for Worldwide Interbank Financial Telecommunication. It is a co-operative society formed by the member banks, with its headquarters at La Hulpe, Belgium. The SWIFT financial messages are trusted as the most authentic and universal financial messages world over. The messages are authenticated communication channel between two parties on prior agreement. The messages largely financial are mailed through computer based medium. The advantage in transfer of messages in SWIFT medium is that it does not require separate authentication like test cipher. The various types of messages are in a prescribed format which has to be properly filled up to transmit the message. The fields of SWIFT messages are so structured that the messages are authenticated and are universal. Important features of SWIFT are as under: Operates on 24x7 basis throughout the year. All messages are transmitted to any part of the world immediately. Message formats are standardized. Information is confidential and is protected against unauthorized disclosure. SWIFT assumes financial responsibility for the accuracy and timely delivery. The uses of Financial Telecommunication system for Indian Banks are as under: SWIFT transmit authenticated financial and non-financial messages. SWIFT with its well-standardized and structured message formats offer a reliable system of message transmission. SWIFT platform is used for transmission of financial and non-financial messages covering international boundaries. Finance (settlement of forex deals), international trade (advising of Letter of Credits, amendments to Letter of Credits etc.)