Explanation:

Statement 1: SWIFT assigns each financial organization a unique code that has either eight characters or 11 characters. The code is called interchangeably the bank identifier code (BIC).
• Prior to SWIFT, Telex was the only available means of message confirmation for international funds transfer. Telex was hampered by low speed, security concerns, and a free message format--in other words, Telex did not have a unified system of codes like SWIFT to name banks and describe transactions.
Statement 2: It is only a messaging system—SWIFT does not hold any funds or securities, nor does it manage client accounts.
• SWIFT India Domestic Services last year (2016) rolled out services to provide harmonised exchange of structured financial information between banks, the Reserve Bank of India, stock exchanges, clearing houses, corporations, and their customers.
Assume a customer of a Bank of America branch in New York wants to send money to his friend who banks at the SBI branch in India.
• The New Yorker can walk into his Bank of America branch with his friend’s account number and SBI, India unique SWIFT code for its India branch.
• Bank of America will send a payment transfer SWIFT message to the SBI branch over the secure SWIFT network.
• Once SBI receives the SWIFT message about the incoming payment, it will clear and credit the money to the friend’s account.