SWIFT Cross-Border Payments Framework: Faster, Cheaper Remittances
Why in the news
SWIFT unveiled a fresh framework for retail payments that cross borders; large Indian lenders are expected to roll it out.
Key facts
- SWIFT = Society for Worldwide Interbank Financial Telecommunication, a global messaging network for secure payment instructions.
- Used by over 11,000 institutions.
| Goals | Features |
|---|---|
| Faster retail transfers | Better tracking |
| Lower costs | Standardised data |
| Predictable timelines | Interoperability between banks |
| Support for small firms and individual senders | – |
Significance for India
Families receiving money from workers abroad, and small businesses trading internationally, benefit from quicker, cheaper payments.
Exam angle
- Function: secure messaging between banks.
- Indian banks expected: SBI, HDFC, ICICI, Axis.