About the Indian Blockchain Infrastructure Company
Indian private sector lenders ICICI, Axis, HDFC, Kotak Mahindra, and 11 other banks are buying stakes in Indian Banks’ Blockchain Infrastructure Company Private Limited (IBBIC). The 15 banks are said to have invested in the start-up IBBIC with a goal to expand the use of Blockchain in the Indian financial sector. Incorporated May of this year, a platform for exploring, building, and implementing distributed ledger technology (DLT) solutions in the financial sector. The system is said to be based on Infosys’ Finacle Connect, ‘a blockchain-based platform that enables digitization and automation of trade-related finance processes.’ Banks in India are coming together to use blockchain technology in solving a central problem in traditional banking which is the processing of Letters of Credit (LCs), GST invoices, and e-way bills.
HDFC and Axis bank has bought 50,000 shares each, investing Rs 5 lakhs each, owning a 5.55% stake in IBBIC. ICICI invested in 4.9 lakh worth of shares, 49,000 fully paid-up equity shares of face value ₹10, constituting 5.44 percent of the issued and paid-up share capital. The banks have all taken equal shares in the blockchain company.
RBL Bank, ICICI Bank, HDFC Bank, Kotak Mahindra Bank, Axis Bank, IndusInd Bank, Yes Bank, South Indian Bank, Federal Bank, IDFC First Bank, State Bank of India (SBI), Bank of Baroda (BoB), Indian Bank, Canara Bank, IDBI Bank, Punjab National Bank, Union Bank of India and Standard Chartered are the banks involved investing in the fintech firm. Each bank is said to invest Rs5 Crore in the company, with a total capital of Rs 75 Crores. The Institute for Development and Research in Banking Technology (IDRBT), the technology and research arm of RBI, is involved in initiating to develop a model blockchain platform to address banking needs. To read more on the story, click here.