Do you know how ISO 20022 gained supremacy over SWIFT messages?

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ISO 20022 (pronounced ‘ISO twenty-oh-twenty-two’) or Universal financial industry message scheme (also called” UNIFI”) is a global standard for exchanging electronic messages between financial institutions. The ISO 20022 standard covers financial information transferred between financial institutions that include payment transactions, securities trading, and settlement information, credit as well as debit card transactions, Foreign Exchange transactions,…

Comparative Overview of CHIPS and CHAPS Payment Systems

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IntroductionCHIPS (Clearing House Interbank Payments System) and CHAPS (Clearing House Automated Payment System) are prominent high-value payment systems operating in different jurisdictions. While both facilitate large-value transactions, they differ in terms of currency, geographical scope, settlement mechanism, and typical usage. 1. CHIPS – Clearing House Interbank Payments SystemCHIPS is a U.S.-based electronic payment system primarily…

Understanding Nostro, Vostro, and Loro Accounts in International Banking

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IntroductionIn the realm of international banking, the terms Nostro, Vostro, and Loro accounts refer to how banks manage and record cross-border transactions and foreign currency holdings. These accounts are essential for facilitating international trade, currency exchange, and interbank settlements, particularly when banks do not have a physical presence in foreign jurisdictions. The terminology originates from…

Correspondent Banking in India: Accounts and Financial Services

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IntroductionCorrespondent banking in India refers to formal arrangements between domestic and international banks to provide a range of financial services, particularly in the context of cross-border transactions. These partnerships enable Indian banks to offer services such as international payments, trade finance, and clearing, even in jurisdictions where they do not have a physical presence. Such…

Correspondent Banking Overview

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Correspondent Banking OverviewCorrespondent banking is a financial arrangement wherein one bank, referred to as the correspondent bank, provides banking services on behalf of another bank, known as the respondent bank, typically across international borders. This framework facilitates access to global financial systems, enabling banks to serve customers in jurisdictions where they lack a direct presence.…

SWIFT Financial messages: authentic and universal

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The SWIFT financial messages are trusted as the most authentic and universal financial messages worldwide. SWIFT financial message is also the most convenient and fastest medium through which banks can meet customer’s requirements to send and receive messages to and from any country. Reasons for trusting SWIFT messages by banks and financial institutions: SWIFT stands…