India-Russia-China explore alternative to SWIFT payment mechanism

India, Russia and China are exploring an alternative to the US-dominated SWIFT (Society for Worldwide Interbank Financial Telecommunication) payment mechanism. Russia’s financial messaging system SPFS will be linked with the Chinese cross-border interbank payment system CIPS. While India still does not have a domestic financial messaging system, it plans to link the Central Bank of Russia’s platform with a service that is under development, the persons cited earlier told ET.

The new system is expected to work as a “gateway” model when messages on payments are transcoded in accordance with a certain financial system. India stopped importing oil from Iran after waiver for such imports was not extended by the US in May this year.  This proposed alternative to the SWIFT financial payment mechanism could be on the agenda of BRICS Summit in Brasilia, according to sources.

Society for Worldwide Interbank Financial Telecommunication:

SWIFT is member-owned cooperative established in 1973, that provides safe and secure financial transactions for its members. SWIFT uses a standardized proprietary communications platform to facilitate the transmission of information about financial transactions.