The research arm of the Indian Government top bank (Institute for Development & Research in Banking Technology) reveals that it has tested Blockch
The research arm of the Indian Government top bank (Institute for Development & Research in Banking Technology) reveals that it has tested Blockchain transaction for the main banking processes in the country. The same technology has also been implemented by the fifth largest private sector bank in India.
This research arm forms part of the Reserve Bank of India (RBI). They reveal based on their research that it is the right time to implement the blockchain technology in the banking sector. The bank has utilized the transaction to make the vendor financing digital especially for customer appliances manufacturer.
As per the reports contained in its white paper (Applications of Blockchain Technology to Banking and Financial Sector in India), IDRBT realized that the technology has the potential of getting rid of the bottlenecks that are within the banking industry. This is achievable since all the processes will be modernized, simplified and streamlined making them available within a shared fabric of common data. This forms a cheaper, transparent and efficient system as compared to the traditional design.
The CEO of the Auxesis group suggests that most of the countries like India need this technology to widen the hidden possibilities and make most of the systems efficient. Gauravs Auxesis provides all the required information about the Blockchain technology. They can explain well to organizations the benefits of this technology and assist them develop and implement without any associated risk.
In the developing countries, to make the system more transparent and safe, the government should come up with solution to curb the issues that are related to vague products and corruption. This can be achieved by making use of real time technologies such as the Blockchain.
The adoption of this technology in the Indian banking sector includes interbank, central bank and the intra-bank transactions and IDRBT suggested that this is the right time to implement it. This is due to the fact that all the stake holders are fully aware of this technology and the way it can make all the banking processes transparent and digital.
As reference, some of the countries such as England, Sweden, Canada and Netherlands have begun exploring the use of this technology in their banking sector. Such countries are doing so to digitize their processes and thus having a cashless society.
The Blockchain network was developed using the Proof-of-Concept (POC) architecture. It simulated the five banks and regulated clearing authority for Domestic Trade Finance which oversees letter of credit and the ‘Enhanced Information’ payments (EIP) which takes care of the interaction between the nbank and the customer.
Blockchain has a booming market and that is the reasons as to why most of the companies such as Auxesis are taking advantage of its growing trend.
The popular company that developed projects such as a p2p Bitcoin trading platform and Cashaa remittance app has come up with solutions on the Ethereums smart contract feature for banking sector. Recently, it collaborated with multichain.org to come up with POC for banks so as to extend the strengths of Blockchain to other industries.