Page 133 - DMGT303_BANKING_AND_INSURANCE

Banking and Insurance

Notes Focal point (CBT) for each bank is provided with computer. The computer is subject to the
technical specification/capacities as approved by Swift and is fully automatic in operation.
The focal point for each bank is called the Computer Based Terminal (CBT) for that bank.
Our CBT is located at FEO, Nariman Point, Mumbai.

All CBTs for individual member banks are connected to a centralized computer system of
Swift, which is generally located in the same country. This is usually termed as Transport
Network Box (TNB). TNB for India is located at World Trade Centre, Mumbai to which
CBTs of all member banks are connected.
TNB from each country is in turn connected to centralized Swift computers, which are
called Regional Processors (RP).
Each RP is in turn connected to another computer system called Slice Processor (SP). SPs
are storing and also forwarding communications received from/to RPS.

All RPs for various countries and the SP are located at two centres in the US and Netherlands.
At both these places, i.e. the US and Netherlands, there are computers called System
Control Processor (SCP) to control and monitor the various RPs and SPs.

These two locations in the US and Netherlands housing the SCP, RP and SP are called
System Control Centres (SCCs).

SCCs in Netherlands and the US are totally connected with each other under fully automatic
system and are one system (despite geographical distance) for all practical purposes for
Swift user member.

Swift is now introducing modified systems in their network which have designed as
SWIFT II. This is being done in stages for various countries.

India has entered SWIFT II directly and as such all instructions/guidelines related to
SWIFT II are applicable for India.
However, both SWIFT I and SWIFT II are fully compatible with each other i.e. adjustments/
requirements for communicating between the two systems are automatically being taken
care of by the computers located at SCC.

Message Security

Swift ensures a very high level of security and efficiency, i.e. safety, privacy, accuracy,
reliability and deliver of messages within certain specified time schedule.
Swift assumes full financial liability for delivery of accurate, complete and validated
messages from the point of entry of the message at RP to the point of delivery of message
to CBT. For ensuring this high level of security, Swift maintains a multi level combination
of physical, technical and procedural measures as explained in the following points.

Access to the Swift network is through a very elaborate authorization process using secret
password codes to which every user bank has to confirm. Each message is assigned an
Input Sequence No. (ISN) on entry of message and on Output Sequence No.(OSN) is given
on exit.

In case this sequence (ISN) is disturbed and/or gets disrupted for any reason, Swift rejects
the message and shows the status of message as rejected after which no further action is
taken by Swift.

After being assigned ISN, all messages are ENCRYPTED (i.e., given some random codes)
and transmitted through the system in the form of those codes. These codes are converted

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