Full Form of INFINET, Indian Financial Network

The acronym INFINET stands for Indian Financial Network. The Indian Financial Network is the backbone of the Indian banking and financial sector. 

Notably, the Reserve Bank of India set up INFINET in 1999 through the IDRBT (Institution for Development and Research in Banking and Technology) Hyderabad. 

The IDRBT developed INFINET to promote the enhancement of the country's banking facility and financial inclusion. It will upgrade the country’s payment and settlement systems. 

Significantly, INFINET solved the problem, which was the biggest bottleneck in the country's banking system. The lack of a system ensured fast, safe, and secure intra-bank and inter-bank communication.

The problems, such as the time taken for the transfer of funds across banks and between cities and the delays in collecting outstation cheques have been easily solved with the help of the INFINET.

Moreover, INFINET comprises members such as all the public and private sector banks, financial institutions, cooperative societies, foreign banks, etc.

INFINET is a CUG (Closed Usage Group) network. INFINET members such as public and private sector banks, financial institutions, etc. use it exclusively.  

As a matter of fact, INFINET presently covers 127 cities in India, having more than 950 VSATs that use one full transponder on INSAT 3B.

INFINET uses a blend of information and communication technologies. Generally, these include Very Small Aperture Terminal (VSAT) and Terrestrial Leased Lines (TLL). Additionally, INFINET is a TCP/IP-based network. 

Furthermore, the IDRBT (Institute for Development and Research in Banking Technology) devised a detailed IP addressing scheme for all the members of the closed usage group members. All members of the closed usage group members mandatorily follow these schemes whenever they use the INFINET.

What is INFINET? 

INFINET, as the network platform for the National Payment Systems, mainly caters to the internet banking applications NEFT and RTGS, MIS, Electronic Clearing Services (ECS) for both credits and debits, online dealing, and trading in securities.

Further, it facilitates inter-branch reconciliation, a structured financial messaging system, and the transmission of inter-city cheque realization. It also promotes pieces of advice, government securities trading, currency chest accounting, etc.

The first step in setting a highly efficient communication backbone for the Indian financial sector was the establishment of VSATs. The Institute for Development and Research in Banking and Technology (IDRBT) explored and devised various ways. It aims to expand the network using more VSATs as well as through high-speed terrestrial links. 

The terrestrial LLN ( Leased Line Network) and various VSATs of the INFINET exist together, having the positives, features, and strengths of both of them. 

Moreover, it gives the user very dynamic and varied options to select between these two networks. The selection is as per the requirement, need, urgency, suitability, availability, and accessibility.

The Indian Financial Network (INFINET) uses various VSATs ( Very Small Aperture Terminal) technology. It is a TDM/TDMA network with STAR topology for data and with DAMA SPAC overlay with mesh topology for voice and video traffic.

Advantages of INFINET

The INFINET using various VSATs technology has several advantages such as-

1. Firstly, it provides very consistent and excellent network response and performance.
2. Secondly, VSATs provide reliable technology for building the communication backbone (INFINET).
3. Moreover, the INFINET network, based on various VSAT technology, is configured and monitored through NMS (Network Management System). It provides easy centralized control and monitoring of every single site.
4. Additionally, the cost of maintenance is very low.
5. The organization entirely owns the network once the necessary approvals and satellite resources are obtained. Consequently, this frees the network from the various intermediate agencies. 
6. Further, one can achieve the best price performance over terrestrial alternatives when the number of sites covered in the network is large. Additionally, when it is highly geographically dispersed. 

Various Intra Bank Applications of the INFINET are intra-bank fund transfer and payment messages, inter-branch reconciliation, quick disposal of loans, and investment proposals. 

Further, the bank allows cash management products, asset liability management, human resource development and personal administration. It also allows management information systems, and software distribution.

Moreover, different Inter Bank Applications of the INFINET technology are electronic fund transfer, clearing, and settlement systems for securities. Additionally, INFINET bank applications include transfer balances from net settlement systems to RTGS servers at periodic levels, currency chest accounting, asset liability management, etc.

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