SWIFT stands for SOCIETY FOR WORLDWIDE INTERBANK FINANCIAL TELECOMMUNICATIONS. It is a cooperative society under Belgian law and is owned and controlled by its member-shareholders. SWIFT is based in Brussels (Belgium). It is a reliable, safe, instantaneous and economical means of communication amongst member banks.
What is the mission of SWIFT?
SWIFT is a worldwide community of financial institutions whose purpose is to be the leader in communications solutions with lowest risk and highest resilience. It provides low-cost competitive financial processing and communications services of the highest security and reliability. It contributes significantly to the commercial success of its members through greater automation based on its leading expertise in message processing and financial standards setting.
When did the inception of SWIFT take place?
SWIFT was formed in 1973. At the time of inception, there were 239 members from Europe and America. Presently Swift has almost 7600 members and participants in 200 countries. Daily messages regularly exceed 9 million and the average transit time is less than 20 seconds.
What was the rationale behind formation of SWIFT?
SWIFT was formed in response to the communications problems faced by the international banking community. The system provides a standard technique for fund transfer among the member banks.
How does the system work?
The financial institutions can do business with one another using computerised systems over an international data network. The member banks are provided with a Swift Interface Device (SDI) which enables them to format messages according to SWIFT rules or to accept messages in SWIFT format from another computer system. Thus it handles the communication between the computer and the network. Each member bank is given a Bank Identification Code (BIC). Normally there are 8 to 11 characters. The first 4 digits represent Bank, followed by 2 digits
Country and 2 digits Region. The last 3 digits represent branch.
How are the messages transmitted and received?
Messages are sent in test key which can be decoded. Message is sent in encrypted form which is decrypted at the receiving end. Charges are levied not based on distance but based on the block of characters.In India the SWIFT Regional Processor (RGP) is located at World Trade Centre, Mumbai.
What is meant by encryption & decryption?
Encryption means translation of data into a secret code. It is the most effective way to achieve data security. To read an encrypted file,you must have access to a secret key or password that enables you to decrypt it. Unencrypted data is called “plain text” and encrypted data is referred to as “cipher text”.
What is the mission of SWIFT?
SWIFT is a worldwide community of financial institutions whose purpose is to be the leader in communications solutions with lowest risk and highest resilience. It provides low-cost competitive financial processing and communications services of the highest security and reliability. It contributes significantly to the commercial success of its members through greater automation based on its leading expertise in message processing and financial standards setting.
When did the inception of SWIFT take place?
SWIFT was formed in 1973. At the time of inception, there were 239 members from Europe and America. Presently Swift has almost 7600 members and participants in 200 countries. Daily messages regularly exceed 9 million and the average transit time is less than 20 seconds.
What was the rationale behind formation of SWIFT?
SWIFT was formed in response to the communications problems faced by the international banking community. The system provides a standard technique for fund transfer among the member banks.
How does the system work?
The financial institutions can do business with one another using computerised systems over an international data network. The member banks are provided with a Swift Interface Device (SDI) which enables them to format messages according to SWIFT rules or to accept messages in SWIFT format from another computer system. Thus it handles the communication between the computer and the network. Each member bank is given a Bank Identification Code (BIC). Normally there are 8 to 11 characters. The first 4 digits represent Bank, followed by 2 digits
Country and 2 digits Region. The last 3 digits represent branch.
How are the messages transmitted and received?
Messages are sent in test key which can be decoded. Message is sent in encrypted form which is decrypted at the receiving end. Charges are levied not based on distance but based on the block of characters.In India the SWIFT Regional Processor (RGP) is located at World Trade Centre, Mumbai.
What is meant by encryption & decryption?
Encryption means translation of data into a secret code. It is the most effective way to achieve data security. To read an encrypted file,you must have access to a secret key or password that enables you to decrypt it. Unencrypted data is called “plain text” and encrypted data is referred to as “cipher text”.