SBI, HDFC, and Other Banks Joins Hands to Use Blockchain for the Processing of Letter of Credit

Financial giants in India such as SBI, HDFC, Axis Bank, and ICICI Bank are coming together in order to utilize blockchain technology to speed up the processing of Letters of Credit (LCs), E-way bills, and GST invoices. The newly formed company is called the Indian Banks Blockchain Infrastructure Company Private Limited (IBBIC) that is going to be at the rudder of this alteration.

SBI, HDFC, ICICI, and Others Join Hands for Forming IBBIC to Speed up Processing LCs

Well, the introduction of blockchain technology to the existing financial system of India will assist in the elimination of the need to do paperwork, wait for the execution of the transaction, and even offer the client a comparatively more secure environment.

In addition to this, it is expected that the formation of the Indian Banks Blockchain Infrastructure Company will be acting as a boon for small and medium-scale enterprises. 

Talking further about the Letter of Credits, these are the letters from a bank that ensures that a purchaser will be paying the seller on time, and for the correct amount. 

At present, it can be seen that the processing of issuing an LC is comparatively slow, and the process does require human arbitration in order to stay away from frauds and validate transactions.

Indian Government to Review Proposed Crypto Ban Regulation 

In accordance with the report shared by popular news providers, the government is in discussions with the financial regulators and the stakeholders in the industry to examine the provisions of the crypto ban in India.

As witnessed back in the month of February, several reports were there that gave rise to the discussions that crypto is getting banned in India. Though that has not been the case as of now and the regulatory bodies are considering a more varied perspective to regulate crypto.

In addition to this, it should be noted that major crypto exchanges such as Kraken, KuCoin, and Bitfinex are looking forward to expanding their business in India.