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Leading Indian Banks Will Participate in a Blockchain Pilot Project

David – Cryptocurrency Expert

  • Leading Indian banks will participate in a test initiative powered by blockchain
  • The project will aid in the fight against loan fraud
  • The initiative includes leading banks including HDFC, SBI and ICICI banks

The Reserve Bank of India is inviting prominent Indian institutions to take part in a blockchain financing experiment. A blockchain-based pilot project with a focus on trade financing is being introduced by the central bank in partnership with more than a dozen prestigious companies. Financial institutions including the State Bank of India, ICICI Bank and HDFC Bank are included in this.

It would aid in reducing loan fraud and frauds if the pilot testing is effective. This occurs at a time when fraudsters obtained nearly $128 million on the pretense of fake cryptocurrency exchanges.

SettleMint from Belgium, Corda Technologies from the US, and IBM will provide technical support for the endeavor coordinated by the RBI Innovation Hub in Bangalore, according to three people with knowledge of the matter. The Union Bank of India, Axis Bank, and Bank of Baroda are all involved.

In the initiative, which will be known as the proof of concept, blockchain technology will be utilized to improve the traceability of buying and selling cryptocurrency. One of the project's focus areas is preventing the falsification of documents like letters of credit (LC). Blockchain technology can assist in preventing LC abuse and any alterations.

It's the goal to incorporate blockchain technology into the Core Banking System (CBS). Before the technology becomes widespread, this project will test it. On the one hand, the Indian government looks to be quite enthusiastic about blockchain technology. The country appears to be discouraging investing in cryptocurrency by levying a high tax on them, though. According to Bloomberg, the Indian cabinet would likely meet to discuss imposing an additional 28 percent tax on top of the current 30 percent cryptocurrency tax.

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