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Consider the following statements about the SWIFT payments system:
It is a messaging system for banks and other financial institutions around the world.
  • It acts as an intermediary to hold or transfer assets.
  • It is controlled by the central banks of G7 countries along with the International Monetary Fund.
    Which of the statements given above is/are correct?
    • a)
      1 only
    • b)
      2 and 3 only
    • c)
      1 and 2 only
    • d)
      1, 2 and 3
    Correct answer is option 'A'. Can you explain this answer?
    Most Upvoted Answer
    Consider the following statements about the SWIFT payments system: ...
    Option a is the correct answer.
    • SWIFT is formally known as the Society for Worldwide Interbank Financial Telecommunication (SWIFT). It was established in 1973 and is based in Belgium. Prior to SWIFT, the only reliable means of message confirmation for international funds transfer was Telex. It was discontinued due to a range of issues such as low speed, security concerns, and a free message format. There are about 11,000 member banks in 200 countries and territories that use SWIFT. Since it began in 1973, SWIFT has become an integral part of the flow of global trade. India’s financial system has access to the SWIFT.
    • Statement 1 is correct: It is a trusted messaging system for banks and other financial institutions around the world. When a bank is a member of SWIFT, their instruction messages are cleared as secure immediately, so the transactions happen quickly.
    • Statement 2 is incorrect: Although, SWIFT has become a crucial part of global financial infrastructure, it is not a financial institution itself: SWIFT does not hold or transfer assets. Rather, its utility lies in its power to facilitate secure, efficient communication between member institutions.
    • Statement 3 is incorrect: It is controlled by the central banks of the G10 countries, the European Central Bank, and the National Bank of Belgium. The Group of Ten is made up of eleven industrial countries (Belgium, Canada, France, Germany, Italy, Japan, the Netherlands, Sweden, Switzerland, the United Kingdom and the United States) which consult and co-operate on economic, monetary and financial matters.
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    Consider the following statements about the SWIFT payments system: It is a messaging system for banks and other financial institutions around the world. It acts as an intermediary to hold or transfer assets. It is controlled by the central banks of G7 countries along with the International Monetary Fund. Which of the statements given above is/are correct?a)1 onlyb)2 and 3 onlyc)1 and 2 onlyd)1, 2 and 3Correct answer is option 'A'. Can you explain this answer?
    Question Description
    Consider the following statements about the SWIFT payments system: It is a messaging system for banks and other financial institutions around the world. It acts as an intermediary to hold or transfer assets. It is controlled by the central banks of G7 countries along with the International Monetary Fund. Which of the statements given above is/are correct?a)1 onlyb)2 and 3 onlyc)1 and 2 onlyd)1, 2 and 3Correct answer is option 'A'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Consider the following statements about the SWIFT payments system: It is a messaging system for banks and other financial institutions around the world. It acts as an intermediary to hold or transfer assets. It is controlled by the central banks of G7 countries along with the International Monetary Fund. Which of the statements given above is/are correct?a)1 onlyb)2 and 3 onlyc)1 and 2 onlyd)1, 2 and 3Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following statements about the SWIFT payments system: It is a messaging system for banks and other financial institutions around the world. It acts as an intermediary to hold or transfer assets. It is controlled by the central banks of G7 countries along with the International Monetary Fund. Which of the statements given above is/are correct?a)1 onlyb)2 and 3 onlyc)1 and 2 onlyd)1, 2 and 3Correct answer is option 'A'. Can you explain this answer?.
    Solutions for Consider the following statements about the SWIFT payments system: It is a messaging system for banks and other financial institutions around the world. It acts as an intermediary to hold or transfer assets. It is controlled by the central banks of G7 countries along with the International Monetary Fund. Which of the statements given above is/are correct?a)1 onlyb)2 and 3 onlyc)1 and 2 onlyd)1, 2 and 3Correct answer is option 'A'. Can you explain this answer? in English & in Hindi are available as part of our courses for UPSC. Download more important topics, notes, lectures and mock test series for UPSC Exam by signing up for free.
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