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15 Indian banks get together to form blockchain trade finance consortium

Thursday 17 June 2021 12:40 CET | News

A consortium of 15 banks have created a blockchain trade finance consortium called the Indian Banks’ Blockchain Infrastructure Co (IBBIC), targeting domestic Letters of Credit.

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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Keywords: banks, blockchain, trade finance, transactions
Categories: Banking & Fintech
Companies:
Countries: India
This article is part of category

Banking & Fintech






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