According to a recent whitepaper Applications Of Blockchain To Banking And Financial Sector In India released by the Institute for Development and Research in Banking Technology (IDRBT), an arm of the Reserve Bank of India (RBI) – the advantages of Blockchain implementation in banking and finance includes cost savings, efficiency and transparency – and there are plans for implementation of Blockchain in the financial industry in India.
R. Ghandi Deputy Governor, Reserve Bank of India Chairman, IDRBT writes:
During recent years, banking industry across the globe is closely observing the developments in one such disruptive innovation viz., the Blockchain technology (BCT). BCT provides tamper-evident recording of the linked transaction history in a distributed network, and has the potential to disrupt the financial business applications. Sound theoretical underpinnings of BCT such as fault-tolerant distributed computing and consensus have been studied for the past two decades.
The nature of BCT addresses risks and inefficiencies in multi-party systems, and that is where its benefits will be most widely received. Applications of BCT for encoding economic signals have been in vogue for the past decade and the claims that it may be useful for digitizing currency are being studied.
Smart-contracts are an advanced application of BCT that can encode complex business workflows for enforcing their conformance, and enhances efficiency through event triggered mechanisms.
Several BCT platforms provide the necessary features to encode smart-contracts in a simple and efficient manner. IDRBT has taken the initiative of exploring the applicability of BCT to the Indian Banking and Financial Industry by conducting a workshop involving all the stakeholders such as the academicians, bankers, regulators and technology partners.
In the process, the participants of the workshop came together to bring out this White Paper detailing the technology, concerns, global experiences and possible areas of adoption in the financial sector in India. The Institute has also attempted a Proof-of-Concept (PoC) on the applicability of BCT to a trade finance application with active participation of NPCI, banks and solution provider, the details of which are presented in the White Paper. I congratulate IDRBT for the timely initiative and trust that the White Paper provides the necessary impetus towards accelerating the adoption of this innovative technology. All members of the Working Group deserve compliments for their inputs and efforts.
The working group included experts from the central bank, IBA, NPCI, CCIL, ISI, State Bank of India, Punjab National Bank, Bank of Baroda, ICICI Bank, HDFC Bank, Axis Bank, Citi Bank, Deutsche Bank, Infosys, TCS, IBM Research, Deloitte and MonetaGo.
- Huobi Charity Joins Rally with Blockchain Community in Global Fight Against COVID-19 - April 2, 2020
- Binance Officially Absorbs CoinMarketCap in $400 million deal - April 2, 2020
- RealT Tokenises and Sells USD One Million in Real Estate On Ethereum - March 30, 2020
- IOTA Teams Up with Eclipse Foundation to Work on Decentralised Marketplace and Identity Solutions to Help Fight Pandemic - March 30, 2020
- University of Malta Students Develop and Use Blockchain Voting Application - March 30, 2020
- Japan’s Nomura Securities and BOOSTRY Issue First Blockchain Digital Bond Offering - March 30, 2020
- Opera Rolls out Update and Expansion of its Cryptocurrency-Friendly Browser Blockchain Architecture - March 30, 2020
- Hong Kong Bank Partners with Aegis to Focus On Asset Digitalization Using Blockchain Technology - March 30, 2020
- European Union Looking to Blockchain Technology for Defense? - March 30, 2020
- Tech against Corona (COVID-19) – Dutch Enterprise Blockchain Company TYMLEZ Helps Dutch Government - March 29, 2020
- Microsoft Patents Human Activity Mining for Cryptocurrency Systems – Data Generated Based on Body Activity can be Proof-of-Work - March 27, 2020
- Binance Kicks Off $5 Million Coronavirus Relief Campaign and Donates USD $1 Million - March 27, 2020
- Medici Ventures Keiretsu Companies GrainChain and Symbiont Working Together to Expand Global Operations - March 27, 2020
- Blockchain-Fueled Entertainment Platform Ficto Launches Premium Interactive Streaming Network - March 27, 2020
- SettleMint – Belgian blockchain startup raises USD $2.09 Million for Expansion - March 27, 2020
- Exclusive Interview: Bitcoin and Cryptocurrency Leader Michael Terpin Sees Light in The Covid-19 Tunnel - March 26, 2020
- Blockchain Real Estate Project Smartlands Raising Funds on Equity Crowdfunding Platform Seedrs - March 26, 2020
- Cryptocurrency Exchange OKEx Greenlights DEA Trade Token Deapcoin For Its Jobtribe and PlayMining Games - March 26, 2020
- Microasset – The International Blockchain Monetary Reserve Announces $3.48 M In Reserve Funding, New Listing on BiKi Exchange - March 25, 2020
- Social Login – KyberSwap Integrates Torus to Offer Quick and Easy Ethereum Wallet Management - March 25, 2020