Linking of SWIFT to the Core Banking System

Shri Shiv Pratap Shukla, Minister of State for Finance in written reply to a question in Rajya Sabha briefed members on Linking of SWIFT to the Core Banking System.

It was stated that the Department of Economic Affairs has apprised that in pursuance to the announcement made in the Budget Speech 2018-19 (para75), a Steering Committee on Fintech related issues was constituted to consider various issues relating to development of Fintech space in India with a view to make Fintech related regulations more flexible and generate enhanced entrepreneurship in an area where India has distinctive comparative strengths vis-a-vis other emerging economies and to focus on how Fintech can be leveraged to enhance financial inclusion of MSMEs.  The first meeting of committee was held on 10.3.2018.

                Reserve Bank of India (RBI) has informed that it has reiterated its instructions regarding “Cyber Security Controls – SWIFT” and “Cyber Security Controls – frauds related to trade finance transactions – misuse of SWIFT”, and mandated banks to implement the prescribed measures for strengthening the SWIFT operating environment in banks within the stipulated deadlines.

            These instructions aim to strengthen SWIFT-related operational controls and reinforce fraud prevention and detection frameworks in place in banks, with a view to avoid misuse of SWIFT.