Financial Services Networks in India

Financial Services
Networks in India
Presented by -
MFM 01 - Bhakti Anbhavane MFM 07 - Namrata Kadam
MFM 13 - Swati Pawar MFM 21 - Nilesh Soni
Introduction
Financial Services network is the communication backbone for the
Indian Banking and Financial Sector. All Banks, Public Sector, Private
Sector, Cooperative, etc., and the premier Financial Institutions in the
country are eligible to become members of the INFINET. The INFINET
is a Closed User Group (CUG) Network for the exclusive use of Member
Banks and Financial Institutions. It uses a blend of communication
technologies such as VSATs and Terrestrial Leased Lines. Presently, the
network consists of over 950 VSATs located in 127 cities of the country
and utilities one full transponder on INSAT 3B.
Histroy
The concept and use of financial networks has emerged in response to the observation that
modern financial systems exhibit a high degree of interdependence. Globalization has
magnified the level of financial interdependence across many kinds of organizations. Shares,
assets, and financial relationships are held and engaged in at a greater degree over time. The
trend is a topic of major interest in the financial sector, particularly due to its implications on
financial crises. The Crises have played a major role in developing the understanding of
financial networks. In 1998, the crash of Long-Term Capital Management (LTCM) exposed
their underlying importance. In particular, the LTCM case highlighted the hidden correlations
inherent in financial networks. In the case of LTCM, financial correlations were much higher
than expected between Japanese bonds and Russian bonds. LTCM took on a significant amount
of risk to trade on this relationship, while underestimating these correlations. The 1997 Asian
financial crisis and the subsequent 1998 Russian financial crisis lead to a divergence of
European, Japanese and U.S. bonds, causing the collapse of LTCM. The ensuing crisis in the
market proved the impact that financial networks can have. Similarly, after the 2008 financial
crisis, many economists have come around to the view the very networked architecture of the
financial system plays a central role in shaping systemic risk.
Types of Financial Services
Banking
Professional Advisory
Wealth Management
Mutual Funds
Insurance
Stock Market
Treasury/Debt Instruments
Tax/Audit Consulting
Capital Restructuring
Portfolio Management
IFTAS
Indian Financial Technology & Allied Services (IFTAS) is a
wholly-owned subsidiary of the Reserve Bank of India, that
designs, deploys & provides the essential IT-related services,
required by the Reserve Bank of India, banks, and financial
institutions. Our flagship payment products and services are a
critical part of India’s financial infrastructure, connecting banking
and financial institutions across the country, reliably and securely.
Powered by state-of-the-art innovation and cutting-edge

technology, IFTAS aims to be a long-term partner for the Indian
banking and finance community. Through our unremitting focus on
excellence, we ensure that the nation enjoys uninterrupted banking
services 24/7, 365 days a year.
Services Offered By IFTAS
 INFINET
Considered the communication backbone of the Indian
Banking and Financial Sector, the Indian Financial Network
(INFINET) is a membership-only Closed User Group
(CUG) Network that comprises the Reserve Bank of India,
Member Banks and Financial Institutions.
As the network platform for the National Payments System,

mostly catering to interbank applications NEFT and RTGS,
INFINET is also used by member banks to access RBI e-
kuber, CCIL systems, and other RBI mandated systems.
 SFMS
Feature-rich and equipped with robust messaging capabilities,
Structured Financial Messaging System (SFMS) is India’s backbone for
inter-bank financial messaging & Centralised Payment Systems. As the
Indian standard for domestic financial messaging for centralized
payment system, banks can link its high volume branches, regardless of
category and level of computerisation to improve efficiency and speed
up fund transfers, MIS reports, etc.
SFMS supports ISO 20022 and is backed by

INFINET as its communication medium to
power Real-Time Gross Settlement (RTGS),
National Electronic Funds Transfer (NEFT), LC,
BG and more.
 Advisory Services
At IFTAS, our focus on financial services and vast domain
knowledge makes us the ideal advisory partner for banks and
financial institutions, both in India and abroad. From building a state-
of-the-art, time-tested, secured, resilient National Payment system to
revamping financial networks and launching various digital initiatives,
our advisory team can help foreign central banks develop banking and
financial platforms to match their country’s needs.
 Gold Store
Gold Store is IFTAS’ secured cloud-based platform for storage,
retrieval and sharing of files. This cross-platform compatible
application allows the sharing of multiple files across file types, both
internally and externally, in a secured and encrypted manner.
 GIFT
Global Interchange for Financial Transaction or GIFT is IFTAS’
integrated payment and settlement system. Thoughtfully designed for
improving operational efficiency of a country’s payment system and
achieve digitization, its robust framework provides end-to-end straight-
through processing (STP) of inter-bank payment messages. GIFT
eliminates the need for manual cheques, thus simplifying processes and
minimizing chances of fraud. This long-term scalable and cost-
effective solution comes with end-to-end security that enables the co-
existence of payment and settlement systems in a modular fashion.
 Indian Banking Community Cloud
Our Indian Banking Community Cloud (IBCC) is a unique Community
Cloud Computing ecosystem that is fully dedicated to the banking and
financial services community. Its contemporary and enterprise-class
cloud infrastructure offers banks world-class functionality without the
hassle of platform and operations management.
Created with the intent to enable technologically competence in banks,

IBCC Cloud offerings can be subscribed in full or partially for specific
services. This subscription model allows newer and emerging banks to
save on setting up IT infrastructure costs and use only the services that
they immediately require. That’s not all, users can also benefit from
additional cost optimization depending on the
target market or segment, as most of the offerings
have been designed to be flexible and operable
in a shared or dedicated
set up.
 Mobility
Owing to an increase in demand for Digitisation, Mobiles have gain
immense importance in today’s Financial Services and other services.
With over 251 million mobile banking users and high smartphone
penetration, the mobile banking landscape is ripe for expansion and
growth. Considering the changing times we have thoughtfully
designed mobility services aiming towards Simple, Secure and
Seamless Banking experience that allows users to access bank
accounts and other services in real-time. Our Cloud hosted mobility
services are another step towards Financial Inclusivity ,and
Digitisation with last mile connect.
 Learning Management Solution
An online framework which can be utilized as e-learning content creation
and accessibility, quizzes, and certification. IFTAS’ Learning Management
Solution is an interactive, web-based, plug-and-play platform hosted on the
IFTAS Cloud. This comprehensive suite of e-learning courses and
assessments helps bankers and other end users across India to enhance their
skills and knowledge. LMS helps banks not only ensure that their
employees are equipped with the latest skillset but also allows them to
customize training content, track learner assessment, attendance,
registration and more through a scalable and hassle-free operating
experience. LMS offers forums, chats, and blogs to help learners connect
and enhance their learning experience. Learners can access LMS through
the web and Android-enabled phones.
Thank You !

Financial Services Networks in India

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Financial Services Networks in India

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Financial Services

Powered by state-of-the-art innovation and cutting-edge

As the network platform for the National Payments System,

SFMS supports ISO 20022 and is backed by

Created with the intent to enable technologically competence in banks,

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