No proposal for common blockchain-backed platform for banks in India

No proposal for common blockchain-backed platform for banks in India

The government has informed the parliament that there is no proposal for a common ledger-backed platform for banks in India.

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

Ms Sitharaman informed the parliament about the state of use ofBlockchain by banks in India.

She told the Upper House that only a small number of banks have been using the technology on a small scale. She said that interoperability is not a major issue between banks.

Sitharaman told Rajya Sabha that a consortium of banks is currently exploring the possibility of using Distributed ledger technology to issue domestic letters of credit LC The consortium of Indian Banks' Blockchain Infrastructure Company IBBIC Private Limited consists of 18 leading public and private sector banks of India.

She said that the consortium was formed to provide a platform for exploring, building, and implementing Distributed Ledger Technology solutions for the financial services sector.

The Reserve Bank of India has been talking about it for a while, while the use of blockchain technology for banking is nascent in India.

The central bank has provided a platform for testing innovative technologies, products and services likeBlockchain through Regulatory Sandbox.