15 Banks Including SBI And HDFC Came Together To Form Blockchain Company To Process Letter Of Credit
- ByStartupStory | June 25, 2021
15 banks including SBI, HDFC came together to form Blockchain company, Indian Banks’ Blockchain Infrastructure Co Pvt Ltd (IBBIC). The IBBIC plans on developing blockchain applications in order to process LCs, GST invoices by using Infosys’ Finacle Connect platform and e-way bills. Each bank has equal shareholding in the IBBIC, with each member investing INR 5 Cr and will hold an equal stake of 6.66% in the company. The company will have a Five-member shareholders’ directors’ board with representatives from Bank of Baroda, ICICI, Axis, Kotak and SBI, appointed rotationally annually.
15 banks that came together to form the IBBIC include that are part of this new company include – RBL Bank, ICICI Bank, HDFC Bank, Kotak Mahindra Bank, Axis Bank, IndusInd Bank, Yes Bank, South Indian Bank, Federal Bank, IDFC First Bank, SBI, Bank of Baroda, Indian Bank, Canara Bank, and Standard Chartered.
This latest initiative aims to bring more transparency, security and efficiency to the banking systems. It will help digitise MSMEs and improve their credit scores. Also, it would further widen the blockchain application to the processing of Letters of Credit (LCs/LoCs), GST invoices, and e-way bills. As per the reports, the new system is expected to go live within a year’s time.
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