The new JV company will service the high and low-value payment market infrastructures through localised systems, governance, oversight and Indian rupee billing.

The first of its kind, the JV will allow banks and the financial community as a whole to reduce complexity, risks and costs, while improving services to customers, claims Swift, which hopes to tap into other domestic markets in the future.

Patrick de Courcy, head, markets and initiatives, Apac, Swift, says: "We have tailored our solutions to local needs, and this joint venture is a significant milestone to serving the domestic market in India. We believe that this JV opens new possibilities for Swift in our core business - not just for India, but for other domestic markets around the world."

Bhavesh Zaveri, head, cash management products, HDFC Bank and Swift board member, adds: "The India JV is the first ever by Swift. The present agreement is culmination of strong support from the Swift Board, lot of hard work by the Swift team, support and endorsement by the Reserve Bank of India and participation by large banks in India."

Shishir Srivastava, head, messaging solutions, Swift, concludes: "While we envisage that the new company will offer services across many domestic markets, our immediate goal is to provide the messaging service for the Reserve Bank of India's new RTGS. We have already developed the design and implementation plan for how we will provide this."