India, Russia, China Developing Financial Payment System As Alternative To SWIFT - Reports

India, Russia and China are exploring an alternative to the SWIFT international payment method, which is dominated by the United States, in order to facilitate financial transactions with countries facing US sanctions, Indian media reported, citing sources familiar with the matter

NEW DELHI (UrduPoint News / Sputnik - 14th November, 2019) India, Russia and China are exploring an alternative to the SWIFT international payment method, which is dominated by the United States, in order to facilitate financial transactions with countries facing US sanctions, Indian media reported, citing sources familiar with the matter.

The initiative may appear on the agenda of the ongoing BRICS summit in Brasilia, according to The Economic Times newspaper.

Its aim is to link Russia's SPFS financial messaging system with China's CIPS interbank payment system, the news outlet said. India is reportedly planning to link its own financial messaging system, which is currently under development, with Russia's Central Bank platform.

The system is expected to work as a gateway algorithm to transcode financial messages in accordance with relative financial systems.

In late 2018, Washington threatened India with sanctions if it continued with its planned purchase of S-400 surface-to-air missile system from Russia. In response, New Delhi and Moscow agreed in July to settle the defense contract in rubles and rupees, The Economic Times reported at the time.

Russia began developing its SPFS system in 2014, following Washington's threats to disconnect it from SWIFT. The first transaction on the network took place in late 2017.