State Bank of Bharat and BANK-CHAIN As RBI’s analysis arm institute IDRBT (Institute for Development and analysis in Banking Technology) issued a written report in favor of BLOCKCHAIN, the beneath lying technology behind BITCOIN, bank of Bharat together with Microsoft, IBM, KPMG, and ten different business banks area unit taking steps along to introduce a brand new technology in Banking sector known as “BANK-CHAIN”.
What is Bank Chain?
Bank Chain would be an open ledger wherever the info is going to be shared by completely different banks which might facilitate them to spot, tackle and forestall frauds and rushing up the disposition method to interested parties. Also, it’ll be terribly helpful for banks just in case of trade finances like bill discounting.
In layman’s terms, contemplate BANK-CHAIN as a google unfold sheet wherever info a few shoppers, useful to banks are going to be placed up, which can be viewed by any bank and therefore when considering the knowledge, it’ll take necessary action.
For e.g If someone A has obsessed a loan from BANK X, and doesn’t pay his EMI’s on time, BANK X would transfer it within the BANK-CHAIN ledger and each bank would be able to read it. currently, if person A goes to a different bank for to any extent further loan, his diary is checked by different banks in Bank-Chain. Somewhat the same sort of a CIBIL score however not within the context of simply loan payments/defaults however additionally different info like KYC’s, etc.
Information on Bank-Chain are going to be seeable solely by collaborating banks during this technology and would be secured, free from being altered, similar to in Blockchain.
Along with SBI and different entities, ICICI Bank, YES Bank, and Axis Bank are eyeing similar technology. Well, during this era of digitization and automation, run batted-in should take steps to strengthen the Banking Sector by adopting acceptable technologies.