Stakeholders in India's banking and financial services sectors are looking closely at ways blockchain or distributed ledger technologies can be used in letter of credit (L/C) and other trade finance applications.

They join the growing constituency of banks and technology partners that have recently announced progress applying blockchain technologies to L/C and other trade finance operations (DC World News, 22 and 30 August; 2, 1 and 16 September; 3 October 2016).


The Institute for Development and Research in Banking Technology (IDRBT) established by the Reserve Bank of India (RBI) is exploring blockchain applications in the Indian banking and financial services industry.

RBI recently held a workshop with bankers, academics, regulators and technology partners to produce a report detailing areas of the financial sector where blockchain technologies could be adopted.

IDRBT meanwhile has facilitated proof-of-concept (PoC) blockchain applications in trade finance transactions along with commercial banks and the National Payments Corporation of India (NPCI).

Whole network

HDFC Bank says it is evaluating several applications for blockchain technologies in its trade finance and know-your-customer operations.

India's largest bank by asset value is also interested in what it describes as whole network blockchain, which links multiple banks via blockchain technologies.

This article represents the views of the author and not necessarily those of the ICC or any of the other partners in DC-PRO.