RBI approves firm to deploy a blockchain solution for cross-border payment platform

As per the reports, Open Financial technologies, a neo-banking company, is ready to launch its cross-border payment platform. RBI has also given approval to the firm to deploy its product. 

The neo-banking company would deploy its solution firstly in the US-India corridor for money transactions. Their solution, BankingStack, is mainly based on blockchain technology, making it highly powerful as well as allowing the countries to keep track of every stage of payment. According to the company’s CEO, Anish Achuthan, this solution can create immutability to transactions and assist countries in various ways.

More on Open Financial Technologies and their product BankingStack

Various things have made this transaction solution unique from others. CEO of OFT said that whenever a payment happens through it, there will always be a ledger that will be recording down the payment at every point, creating immutability to the transactions.

RBI approves firm to deploy a blockchain solution for cross-border payment platform

Achuthan also stated that their company is thinking of collaborating with different banks to provide a variety of solutions for cross-border payments, which would benefit a vast amount of Small And Medium-Sized Enterprises in our country.

Currently, it is one of the first four firms in India that has received RBI’s approval to launch its blockchain-based solutions for cross-border transactions. Other listed firms on this list are Fairfax Solution PL, etc.

This money transaction system started the previous year in the month of September with numerous applications from 26 different companies that have been convinced through the live testing of the company’s products. Also, the approval for its solution deployment came amidst a dollar crunch in the country. It is supposed to reduce the stress on importers as well as exporters of both countries.

RBI sees blockchain-based technologies as India’s baking future

As per the reports, RBI is planning to make this fantastic technology part of our country’s core banking payment solution. Besides that, the previous month, the CBI also announced a great initiative in which they are thinking of collaborating with various banks to utilize this blockchain-based open source technologies to keep track of every monetary transaction within the country. 

What are your thoughts on this blockchain-based cross-border payment platform? Do you think it will be able to sustain in the market and gain recognition? Let us know in the comments below. And, if you found our content informative, do like and share with your friends.

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