The West’s intent to cut off major Russian financial institutions from the SWIFT remittance system, TribuneIndia reports. This sets a chance for India and China to deploy the financial systems that had been prepared for such occurrences.
And with SWIFT’s privacy being compromised, a parliamentary committee advised the authorities to enhance the Structured Financial Messaging Solution (SFMS) or create a new one for intra-bank message transfer.
Iran and North Korea have also been disconnected from SWIFT. Internally, Russia is utilizing the SPFS system that was made after threats by the West to cut off the country from SWIFT in 2015. China will use the CIPS system for the international flow of financial data. The CIPS system is a cross-border remittance system in local currency.
The credit in ruble and rupee may accrue. However, New Delhi aims to keep the slate clean by motivating the exportation of Indian goods to Russia where other sources have blocked ailing to the sanctions led by the US.