BENGALURU: SBI uses blockchain for KYC, smart contracts by December. India’s biggest lender SBI will roll out beta launches of blockchain-enabled smart contracts by next month, Stated Sudin Baraokar, head of innovation. Later, Blockchain-enabled KYC will soon follow suit. These applications are developed to explore and build blockchain solutions for banking. 27 banks joined as a part of BankChain.
Baraokar said, “By next month, we should have two beta production solutions for use by twenty-seven banks. The beta products ready for use are smart contracts and KYC.”
Smart contracts use blockchain. This medium is a distributed and decentralized ledger to maintain agreement between parties. We do not need any enforcement agency as the code and agreements are public.
What is SBI uses blockchain for KYC:
State Bank of India is the first member of BanckChain. BankChain system formed in February. Now, A total of 22 Indian banks are participating. Further private banks viz DCB Bank, ICICI Bank and Axis Bank and five middle east based banks also participating. Pune-based startup Primechain Technologies creates these solutions for BankChain.
Baraokar said, “It is a big step. All the banks are moving together and collaborating in BankChain. It will de-risk investments in emerging technology. Hence, all banks can come and invest at once. We share knowledge and reduce the cost & take this further by sharing each other’s technical teams. We mainly focussed on solutions that banks do not have like smart contracts.
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