Indian second-largest private bank ICICI recently made an announcement on having 250 corporates to make trade finance transactions on its own blockchain platform. The transactions to be made on the ‘custom-made’ blockchain platform of the Indian bank giant can be both domestic and international.
According to the message disseminated by the ICICI bank, corporate firms and field giants will be able to undertake different types of transactions over their blockchain tech. The transactions can include salary payments to employees, domestic vendor payments, payments for raw materials etc.
In the press release published earlier, it was stated that some of the largest Indian companies already signed up for the blockchain application. This will give them more convenient, cheaper as well as secure and efficient opportunities to make transactions.
One of the main advantages of the new technology is improving trade finance process which is mostly paper-intensive by bringing the sides on the same digital platform. This makes the decision making process more effective and above all in real time.
In addition, ICICI highlighted another major benefit of switching to a ‘distributed and unalterable ledger’. This allows viewing all the required transaction data (local and international) in real time for all the sides including buyers and sellers. The info can be available to be viewed in all ICICI branches and locations. ICICI has over 4,800 branches throughout the country.
ICICI chief executive, Chanda Kochhar revealed some of the company’s major goals for the future in his recent announcement. Kochhar reported that they will keep working towards even wider implementation of blockchain applications in their systems. In addition they are collaborating with peer banks and other partners with the main aim of creating a comprehensive ecosystem in the industry with the use blockchain and evolving common working standards in order to contribute to even greater adoption of this initiative.