Fifteen banks have formed the Indian Banks' Blockchain Infrastructure Company (IBBIC) that will harness blockchain technology to process letters of credit (L/Cs) for domestic transactions in India.

The new company comprises ten private-sector banks, four public-sector banks and one foreign bank.

Digital benefits

The company's technology aims to eliminate fraud while reducing paperwork and transaction times by digitally verifying data and documents.

It will use 'e-way bills' to track the movement of goods and services electronically and ensure transactions comply with tax regulations.

While blockchain L/Cs have been tested by several companies and consortia, the IBBIC's initiative is one of the first to focus on domestic transactions.

Banks committed

Participating private banks are RBL Bank, ICICI Bank, HDFC Bank, Kotak Mahindra Bank, Axis Bank, IndusInd Bank, Yes Bank, South Indian Bank, Federal Bank and IDFC First Bank.

Public sector banks in IBBIC are State Bank of India, Bank of Baroda, Canara Bank and Indian Bank, while Standard Chartered is the only foreign bank in the new company.

This article represents the views of the author and not necessarily those of the ICC or Coastline Solutions.