IBA warned banks to change the system, said- otherwise the transaction of money from abroad may stop

The Indian Banks Association (IBA) has warned all the banks to adopt SWIFT's new ISO 20022 as soon as possible. Under this, IBA has cautioned that unless they implement SWIFT's new ISO 20022 standards in a short while, then they might encounter severe issues in cross-border payments (international transactions). IBA Chief Executive Officer Atul Kumar Goyal has written a letter to all the banks recently stating that the banks should initiate migration towards this new system by August 2025, so it can be implemented in time easily.

This is a new international system, with the help of which banks will be able to send money to each other and share transaction-related information even faster, safer and at a lower cost. This will reduce the possibility of fraud and the banking system will work more smartly and transparently than before. In this matter, IBA clearly said that the banks that do not adopt the new system in time will have to face problems like technical problems, loss of customer trust, and interruption in service.

At present, only 3 Indian banks have been successful in adopting this system up to 85%. The rest of the banks are thinking of changing it as the last date of November 2025 approaches, which can be dangerous, according to IBA. However, if the banks do not implement this new system on time, then its effect can be that transactions from the bank can be stopped, and messages can be rejected. The customer can face problems. Also, the banks may have to bear fines or additional expenses.