No plan to create blockchain-backed bank platform in India, says govt.

The government has told parliament that there is no plan to create a blockchain-backed bank platform in India.

There is no proposal to set up guidelines or prescribe a model common blockchain technology platform for the banks, Finance Minister Nirmala Sitharaman told Rajya Sabha in a written reply.

Sitharaman also informed parliament about the state of blockchain usage by banks in India.

She said that only a small number of banks have been using blockchain technology on a small scale. Interoperability is not a major issue between banks, she said.

Sitharaman told Rajya Sabha that a consortium of banks is currently exploring the possibility of using distributed ledger technology DLT - blockchain is a distributed ledger to issue domestic Letters of Credit LC. The consortium - IBBIC Private Limited - consists of 18 leading public and private sector banks of India.

The consortium was incorporated to provide a platform for exploring, building, and implementing distributed ledger technology solutions for the financial services sector.

While blockchain technology is becoming a big industry in India, the Reserve Bank of India has been talking about it for a while now.

Regulatory Sandbox has been a platform for evaluating innovative technologies, products and services like blockchain, which has been provided by the central bank.