RBI recognising the pressing need to harness information technology for intra-bank and inter-bank communication set up BANKNET in 1985. The design and implementation of BANKNET was entrusted to M/s. CMC Ltd.

The BANKNET infrastructure uses RBInet, which is a communication software to provide message and file transfer between branches of banks and across banks

Commissioned in 1991, BANKNET is a packet switched X.25 based network with nodes at Mumbai, Delhi, Chennai and Calcutta, and a switching centre at Nagpur with a mesh topology. In addition, Bangalore and Hyderabad are connected to Chennai through remote PADs. IBM 4381 mainframes at the 4 NCCs, connected to nodal Packet Switch Exchanges (PSEs) through Front-End processors using NCP/NPSI (Network Control Program/Network Packet Switching Interface), provide messaging facility. BANKNET uses a store-and-collect transmission logic, provided by the Message Transfer Utility (MTU), in the systems.

User banks access BANKNET through leased lines at the respective local centres using asynchronous ports on PADs and PC/UNIX machines with COMET (Computerised Message Transfer and File Transfer) software, developed in 'C'. The Message Transfer Utility enables 400 users to login at a time at each IBM node.

COMET has facilities for message creation, deletion, editing, ascertaining status of messages, listing and receiving acknowledgement etc. It also permits free format messages of 8 lines of 48 characters each.

Various message format templates, similar to SWIFT formats are available in COMET. Message formats for funds transfer applications such as TT issue, TT Purchase and TT Confirmation, Bank transfer on own account, Bank transfer in favour of a third party, etc. are available. Similarly several message formats for critical data transmission activities such as reporting weekly statement of accounts, daily and monthly balances of Government accounts, agency transactions in Government accounts, transfer responding advices, foreign currency rates, advice of cheques for collection, balance queries, inter-city advices etc. too are available.