center arranges to transmit to the beneficiary’s bank / institution.
• In those countries where banks do not have many branches / offices, they operate
through a correspondent bank for all transactions.
• Where such correspondent bank’s services are availed, the process of transmitting
message will need the details of such correspondent bank.
• It is also in the practice that different correspondents’ services are availed in different
countries, and different accounts are maintained for different banking purposes.
• When messages are transmitted through correspondent bank services, the additional
details such as correspondent bank’s name, BIC address, account numbers are also to be
included in the message, in the relevant column of the SWIFT format.
• The message transmitted through SWIFT is received within a few seconds by the
ultimate beneficiary institution, if the receiver is “logged in” the interface.
• In case the receiving participant is not on, the messages are arranged in queue at the FIN
center and whenever the receiver “logs in” the interface, the messages are pumpedin
from the SWIFT hub to the beneficiary’s interface.
Messages and Fields
• In the SWIFT messages that are normally exchanged between banks have been divided
into categories such as:
– Customer Transfers and Cheques.
– Financial Institution Transfers
– Financial Trading.
– Collections and Cash letters.
– Documentary Credits & Guarantees.
– Precious Metals and Syndications.
– Travelers Cheque.s
– Cash Management and Customer Status
– Supporting System Messages..
• The serial number given against each category is known in SWIFT as the CATEGORY
• Under each category, various types of messages are sent / received by banks.
• For example, under the category Documentary Credit, messages pertaining to Issuance
of L/C, Amendments to L/C, Reimbursement claim, Advice of discrepancy in documents
etc., are transmitted by banks.
• Each of the above messages is considered as a MESSAGE TYPE.
• SWIFT has defined various