The government has told parliament that there is no proposal for a blockchain-backed platform for banks 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.
The minister also informed parliament about the state of blockchain use by banks in India.
In addition, she said, only a few banks have been using blockchain technology on a small scale. The issue of interoperability is not a major problem between banks, she said.
Sitharaman told Rajya Sabha that a Consortium of banks is currently exploring the possibility of using distributed ledger technology DLT to issue domestic Letters of Credit LC. The consortium - IBBIC Private Limited - consists of 18 leading public and private sector banks of India.
She said that the consortium had been created to provide a platform for exploring, building, and implementing distributed ledger technology solutions for the financial services sector.
While blockchain technology is being utilized in banking, the Reserve Bank of India has been discussing it for a while now.
The central bank has provided Regulatory Sandbox with a platform for testing innovative technologies, products and services like blockchain.