State Banks plans blockchain platform for faster lending

Indian state-run banks are considering establishing a common blockchain platform for issuing letters of credit and facilitating multi-party underwriting for corporate clients.

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The proposed Digital Balance Confirmation Portal would link a business entity's bank accounts and credit facilities from multiple banks.

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The platform would support smart contracts and harmonize with the enterprise software of public sector banks. This will reduce credit intermediation costs.

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The initiative is led by PSB Alliance Private Limited, aiming to onboard a wide range of entities and allowing fintech players to collaborate under a revenue-sharing model.

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This move follows a previous unsuccessful attempt by private and public sector banks, and the government encourages collaboration and adoption of innovative technologies like blockchain.

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State Banks plans blockchain platform for faster lending

Indian state-run banks are considering establishing a common blockchain platform for issuing letters of credit and facilitating multi-party underwriting for corporate clients.

The proposed Digital Balance Confirmation Portal would link a business entity's bank accounts and credit facilities from multiple banks.

The platform would support smart contracts and harmonize with the enterprise software of public sector banks. This will reduce credit intermediation costs.

The initiative is led by PSB Alliance Private Limited, aiming to onboard a wide range of entities and allowing fintech players to collaborate under a revenue-sharing model.

This move follows a previous unsuccessful attempt by private and public sector banks, and the government encourages collaboration and adoption of innovative technologies like blockchain.

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