A Blockchain Platform For Banks In India

Is it possible to remove financial difficulties for micro, small and medium size companies (MSMEs)? Indian Banks are sure of it. A few of them work together on a new blockchain platform.

We still have winter outside. However, it feels like spring in India. A few weeks ago, we reported on the cryptocurrency legalization in the Asian country. Now, we have good news concerning the Indian blockchain industry.

Blockchain for small companies

According to a report from the daily news Economic Times, there are 11 banks involved in the project, including ICICI Bank, HDFC Bank, Kotak Mahindra Bank, and Axis Bank among them.

Abhijeet Singh, head of business technology at ICICI Bank, said:

“The idea of having such an organisation is to remove any communication hurdle among the different banks. A blockchain network can only thrive if the entire ecosystem is working in synergy through a single network.”

Transparency in raising funds

The whole action is called “Blockchain Infrastructure Company”. The platform will make it easier for businesses with a smaller turnover to raise funds in a transparent manner.

The network will provide lenders the needed access to the public credit data and help them make their lending more cautious and less risky. Such a system will also remove the information hierarchy between large corporates and MSME lenders in terms of obtaining credit from the banks.

Bankers also want to reduce costs with that platform. A network promoted by large lenders is likely to become the big blockchain system.