Financial standards are the language with which financial institutions communicate with one another. It is critical that these standards be defined in a collaborative manner with all industry participants to ensure buy-in and acceptance.
SWIFT India is an industry-owned venture that aims to establish a constructive and on-going dialogue in the development of new financial standards. We work with the Indian Banking Association, banks, corporates and market infrastructures to faciliate this dialogue, supplemented by SWIFT's deep expertise in global financial standards.
- What should be the structure of a customer credit transfer when transmitted from corporate customers to banks?
- How should this structure be populated for the different types of high and low value payment instruments that exist today?
- How flexible should these instructions be? Does the structure accommodate all business scenarios?
- Does the structure contain all the information required for the bank to execute the instruction in a fully automated and secure manner to ensure the beneficiary receives the funds at the earliest?
- Does the bank have necessary information to meet its KYC and regulatory reporting requirements?
These are the types of critical decisions SWIFT India’s Solution Working Groups (SWGs) tackle in their deliberations as they produce local market practice guidelines (MPGs).
In the domains of Payments and Cash Management, Securities, Trade Finance and Treasury, the working groups make reference to global standards definitions and determine, in the context of India’s local practices, how these standards can be adapted for local use. MPG’s define the instruments, participants, flows, message structures and guidelines for domestic practices.