Blockchain Solution for Trade Finance Created by Infosys
Infosys has come up with a blockchain system based on tracking documents for trade finance. It has now decided to execute the solution with seven private banks in the nation, namely ICICI Bank, Kotak Mahindra Bank, IndusInd Bank, RBL Bank, South Indian Bank and Yes Bank.
the name of the solution is India Trade Connect and it enables banks to track exchange records digitally and carefully. Trade financing and associated governance processes were at the core of the $1.8-billion Nirav Modi-Punjab National Bank outrage, in which he issued deceitful letters of undertakings to encourage worldwide trade.
Sanat Rao, Chief Business Officer at Infosys Finacle said:
“Trade financing is document-heavy and process-heavy. The blockchain solution allows this to happen in a digitised manner. Because of the network effect, where a buyer, the buyer’s bank, the seller and the seller’s bank are all on the platform, it creates a single source of truth.”
Two banks have already moved to the production-period of the platform, whereas the others still testing it. The platform could be extended to incorporate international trade transactions.
Infosys was in talks with other lenders which included the Indian arms of universal banks to join the network. The organization officials said that the work on the India Trade Connect platform began a year ago.
The Associate Vice-President of Finacle Product Strategy, Rajshekhara Maiya stated:
“We began with a workshop facilitated by ICICI Bank. It took about six-seven months. We are also in talks with the Reserve Bank of India for this. Regulatory overview of transactions typically happens as a post-mortem but if the regulators are party to the network, they can have a real-time view.”
The company said that the platform is still very new and therefore the pricing models are still very flexible. In order to have an access to a testing environment, the banks pay an initial fee which will turn to subscription revenue once they start using it.