Question : Which bank becomes the first bank to enable the document embedding feature on structured financial messaging system (“SFMS”) managed by Indian Financial Technology and Allied Services ?
(A) IDBI Bank
(B) HDFC Bank
(C) Axis Bank
(D) CSB Bank
Answer (A)
Related facts
- IDBI Bank Limited has become the first bank to enable the document embedding feature on SFMS managed by IFTAS.It was declared on 28 September 2020.
- In an effort to further digitize the trade finance transactions and to secure the financial communication system, IFTAS has introduced a feature of “document embedding”, along with LC / BG(Letter of Credit / Bank Guarantee) messages.
- This new feature of “document embedding” provides banks with the functionality of transmitting a pdf.document upto 1MB size along with the LC / BG messages.
- Transmission of digitally signed documents ensures reliability of the transaction.
- The new feature will ease the current process of manual verification, reconciliation, reduce frauds, and enable documentary evidence for all the parties involved in the transaction.
- Reliability of the BG gets enhanced when a copy of the stamp duty information gets embedded and transmitted along with the message itself, through the straight through processing enabled SFMS.
- In recognition of IDBI Bank Limited’s efforts in furthering digitization of trade finance processes, IFTAS has appreciated the efforts put in by IDBI Bank Limited in implementing the enhanced feature ahead of all its peers.
- SFMS
- Structured Financial Messaging System (SFMS) is a secure messaging standard developed to serve as a platform for intra-bank and inter-bank applications. It is an Indian standard similar to SWIFT (Society for World-wide Interbank Financial Telecommunications) which is the international messaging system used for financial messaging globally.
IFTAS
Indian Financial Technology and Allied Services (IFTAS) is a wholly owned subsidiary of the Reserve Bank of India, mandated to design, deploy & support IT-related services to the Reserve Bank of India, and all Banks and Financial Institutions in the country.
By — Pankaj Pandey.