INTERNATIONAL COMMUNICATIONS PAYMENT SYSTEMS
SOCIETY FOR WORLD WIDE INTER BANK FINANCIAL TELECOMMUNICATIONS (SWIFT):SWIFT an acronym for Society
for world wide inter-bank financial telecommunications is a joint, being exchanged physically. All foreign currency,
third country commercial payments are settled electronically.
FEDWIRE (USA): System of inter bank settlement operated by Federal Reserve Bank of USA. The facility is
available to member banks throughout USA. The .facility is available for paper instruments like cheques, demand
drafts also apart from online transactions. It is therefore available in both on-line and off-line formats. However, it
is restricted to US Dollar instruments only. It is not a general Inter-bank System but is restricted to Federal
Reserve Bank and Banks having their accounts with Federal Bank. It is meant for domestic settlements within
CHAPS (UK): Clearing House Automated Payments System (CHAPS) is the British equivalent to CHIPS, handling
receipts and payments in LONDON. This system also works on the net settlement system. non—profit cooperative
society owned by about 250 banks. Most of these are European and North American banks with
headquarter at Brussels. SWIFT is a world wide, computer based secure net work system and each member has
access to all the other members. It operates on a secure network. It is a large network of interconnected banks
and financial institutes facilitating secure international dealings. It eliminates the need to maintain multiple coding
systems with various correspondents and totally removes the risk of theft of code books, errors creeping as a
result of not updating of code books etc. Messages are delivered in uniform perform or formats. This reduces the
chances of misinterpretation or confusion. Besides being confidential, safe, self authenticated and swift in real
sense, the system reduces the cost of the transaction too.
CHIPS (USA): CHIPS stand for Clearing House Inter bank Payment System. It is an electronic payment system
and is jointly owned by New York house clearing association members. It processes more than a million
instruments daily without
TARGET (EURO): Trans-European Automated Real-Time Gross Settlement Express Transfer system is a EURO.
payment system comprising 15 national RTGS systems working in EUROPE.
RTGS-PLUS AND EBA (EURO): These are other Euro clearing system. RTGS plus, is a German hybrid clearing
system operating as a European oriented real time gross settlement and payment system with over 60
participants. The EBA-EURO-1, with a membership of over 70 banks, in all EU member countries, works as,a
netting system with focus on cross border Euro payments. For retail payments, EBA has another system, called
STE01, Wit* over 200 members across EU zone. STEP 2 is also in use in EU zone, which facilitates straight
through processing (STP) to Member banks, using industry standards.