The State Bank of India, hereinafter SBI, is actively seeking to promote information sharing among banks in the country using Blockchain technology.
Dubbed ‘Bankchain,’ the initiative aims to target bad loans and fraud which “make up one-fifth of banks’ loan book,” Economic Times India reports.
“Being the largest bank, SBI has taken the lead in initiating Blockchain, and we are in talks with banks and other companies for this,” M Mahapatra, SBI’s deputy managing director, told the publication.
He added that the first step was the creation of a forum for digitizing loan and trade finance documents which could be put on the Blockchain.
The move comes at the same time as new legislation proposed by the Reserve Bank of India on payment systems refuses to acknowledge Bitcoin and cryptocurrencies as a valid form of tender in India.
Although regulators have issued warnings to citizens on dealing with cryptocurrencies, no hard-and-fast rules have yet been made into law about their use. Nonetheless, following a currency shake-up last November from which the country is still recovering, Bitcoin trading among Indians continues unabated.