The banks involved include State Bank of India, ICICI and HDFC Bank, as well as Standard Chartered.
IBBIC aims to cut transaction times from 4-5 days to a matter of hours and reduce the volume of paperwork. However, another issue in trade finance is fraud, specifically submitting paperwork to different lenders to raise more than the shipment value. Using a blockchain, it should be more difficult to raise multiple Letters of Credit for the same goods shipment.
The Letter of Credit solution is raising USD 680,000 from each bank for a total of USD 10.2 million funding and will use the Infosys Finacle Connect solution.
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