Blockchain Platform For Small Business To Be Developed In India
Indian banking institutions initiated cooperation to create a blockchain platform that will help remove barriers to financing small and medium businesses, the Economic Times reports.
The initiative brought together eleven banks in the country, among which the largest are the State Bank of India, Kotak Mahindra Bank, the second largest lending institution, ICICI Bank, and others. They have already met to discuss the creation of a blockchain platform that will help firms with a small cash flow to raise funds transparently.
The project will be implemented as part of a consortium called the Blockchain Infrastructure Company.
It is very difficult for small and medium businesses to receive loans because of a low cash flow, Viral Acharya, Deputy Governor of the Reserve Bank of India, stated.
Recently, India has been moving in the direction of the most comprehensive use of blockchain technology within the state. This is especially noticeable in contrast to the rejection of cryptocurrency by regulatory organizations.
In the summer of 2018, the country's government announced the launch of the IndiaChain blockchain project, which should help private and public organizations create apps for tracking large amounts of data.
In January 2019, the Institute for the Development and Research in Banking Technology of India (IDRBT) developed the blockchain introduction plan for the country's banking institutions.