Banking for Beginners

SWIFT and RUSSIA   In recent days, the term SWIFT has been heard a number of times, in context with sanctions imposed on Russia by western countries, in retaliation for Russian invasion of Ukraine. Here an attempt is being made to explain SWIFT to the uninitiated, its importance and usage. We shall also briefly touch upon Russia’s position.   SWIFT stands for Society for the Worldwide Interbank Financial Telecommunication . When I joined the banking industry in early eighties, financial messages viz. opening of letters of credit were effected through tele printer (telex) machines The system was slow and over a period of time it was unable to handle increasing number of transactions. Therefore a need was felt for establishment of a an advanced secure messaging system that would facilitate cross-border financial transactions. SWIFT was born in 1973 with its headquarters at Brussels, Belgium. The organization started with 500 member institutions in 22 countries and currently