India is all set to launch its own international financing messaging system similar to Society for Worldwide Interbank Financial Telecommunications (SWIFT), a channel used to transfer funds globally.
According to an ET report, the move is part of the government's plan to internationalise the Indian Rupee. It is believed that the introduction of such a system will help in bilateral trade in the currency.
According to officials familiar with the matter, an expert panel of bankers, namely from the State Bank of India, Bank of Baroda, Bank of India, and Central Bank of India along with others, is exploring options and are expected to submit their findings by next month.
"One of the suggestions was to have an independent financing messaging system that can be used with countries where we have bilateral trade agreements. This committee will now suggest measures on how to make this operational and what are the challenges. Accordingly, the issue will be taken up with other stakeholders, including the Reserve Bank of India (RBI)," a bank official told the publication.
The panel will also be looking into Structured Financial Messaging System or SFMS, RBI's current platform.
The report also stated that the government is pushing banks to conduct outreach programmes with the international trading community, in order to promote trade using Special Rupee Vostro Accounts (SRVAs).
Till now, 20 banks from 22 countries, including Bangladesh, Germany, and Russia, have opened 92 such accounts.
Published 28 July 2023, 09:40 IST