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Eleven Indian lenders, including Axis Bank, ICICI Bank and HDFC Bank, have joined forces to launch the country's first national channel for financing the supply chain of small and medium-sized enterprises (SMEs), according to a report released in March. Economic time (AND).
In addition to Axis Bank, ICICI Bank and HDFC Bank, the group includes Kotak Mahindra, RBL Bank, Yes Bank, Standard Chartered Bank and South Indian Bank. According to the report, IndusInd Bank, State Bank of India and Bank of Baroda are external members.
"All these actors in the logistics chain, banks, logistics partners, customs, etc., have different technological platforms and technical skills … a common blockchain network harmonises the requirements and allows everyone to see the flow of trade on a unique platform, "Akhil Handa, head of fintech and new business initiatives, Bank of Baroda.
Vivek Belgavi, Fintech consultant at PwC, said: "A blockchain is a synchronized large ledger where data entry by any member is visible to all actors in the supply chain, but data entered at any time are immutable, "he added. It is impossible to modify an entry in the blockchain once it has been made, which makes the transaction register completely transparent and safe from fraud. "
Abhijeet Singh, head of business technology at ICICI Bank, said, "The idea of creating such an organization is to remove any barriers to communication between banks. A blockchain network can only flourish if the entire ecosystem works synergistically via a single network. "
At meetings organized by a consortium called Blockchain Infrastructure Company, banks talk about a network that can provide essential access to public credit data, which in turn can guarantee less risky transactions.
This decision should stimulate the financing of small businesses.
According to the report, the latest data from the central bank showed that the outstanding credit of all commercial banks with the sector of MSMEs (micro, small and medium enterprises) accounted for 17.3% of the outstanding total loans to companies from banks.
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