SBI to use blockchain for smart contracts and KYC by next month

India’s largest lender State Bank of India will roll out beta launches of blockchain-enabled smart contracts by next month, according to Sudin Baraokar, head of innovation, SBI.
 
Blockchain-enabled Know Your Customer (KYC) will soon follow suit. These applications are part of BankChain, a community of 27 banks, which have joined hands to explore and build blockchain solutions for banking.
 
“By next month, we should have two beta production solutions ready for use by the 27 banks. We will also invite further participation. The beta production that will be ready are smart contracts and second is KYC,” said Baraokar.
 
BankChain was formed in February with State Bank of India being the first member. It now has 22 Indian banks, including ICICI Bank, DCB Bank and Axis Bank, and five Middle East-based banks. BankChain has tied up with Pune-based startup Primechain Technologies to create these solutions.
 
“BankChain is a big move. It is getting all banks together and collaborating. It is also de-risking our investment in emerging tech, so that all banks can come and invest at once... we can also share knowledge and reduce the cost. We can also use each other's technical teams to take this forward. We focused on solutions that the bank does not have... things like smart contracts, which is not regulatory heavy. We focused on those solutions,” said Baraokar, in a chat with ET, at the recently concluded Bengaluru Tech Summit.
 
Smart contracts are basically contracts which use blockchain, a distributed and decentralised ledger, to maintain contracts between parties. The code and agreements are public, hence traceable and irreversible and thereby do not need any enforcement agency.
 
“Smart contracts can be used for simple things like non-disclosure agreement... rather than signing forms. A lot of internal processes can be contracted. We do a lot of IT procurement, a lot of it can be implemented using blockchain,” said Baraokar.
Shoot

Trending News

Myntra in advanced talks to buy 5% stake in Wildcraft now

Huawei to refocus on India to boost global show

Axis Bank CIO Amit Sethi asked to resign after whistleblower complaint

TCS looks inside for next big technology solutions

Bessemer Venture Partners plans to invest $40-50M in India in 2018

Oyo to focus on weekend business and cut losses

Digital wallets staring at a major crisis with India's strict KYC rules

Udaan lands $50M in Series-B funding from LightSpeed & Yuri Milner's Apoletto

Indian startups need not fear MNCs: Yossi Vardi

Ronnie Screwvala plans to set up e-sports federation

Amid fund crunch, ShopClues raises $1M bridge round from Unilazer Ventures

Walmart's Flipkart investment negotiations include a plan to open retail stores

Google's firing of anti-diversity memo author was legal: US Labour board

Infibeam tweaks business to keep up with 4G wave

Samsung India sets sales goal of over $10 billion this year

Facebook face big challenge to prevent future US election meddling

Intel hit with 32 lawsuits over security flaws

Apple promises fix for serious Telugu character bug

GrabOnRent launches operations in Mumbai and Gurgaon

Crypto fall fails to drown initial coin offerings

Kalpnik uses AR & VR to help people 'go' to any place of worship

SpaceX is launching its broadband satellites into orbit this weekend

Unilever threatens to cut back online ads over 'toxic' content

Google hires former Samsung Mobile CTO to coordinate Internet of Things projects

Go-Jek plans India foray in second half of 2018

Pivoting away from Cube brought us to the right route: PayU's Jitendra Gupta

Ola parent to invest Rs 400 crore to boost Foodpanda India logistics & tech

Alibaba plans tighter integration of Paytm Mall with BigBasket & XpressBees

MakeMyTrip posts wider loss in Q3, may revisit OYO strategy

Google fined Rs 135.86 crore by CCI for 'search bias'

RBI suggests tax sops, self-regulation to build fintech space

Swiggy hires new CEO for its Access Service, gets new CFO

Logistics company Delhivery registers 44% increase in FY17 revenues

WeWork to acquire one of the oldest social networks, Meetup

Toyota, Suzuki to produce electric vehicles for India market by 2020

Qualcomm rejects Broadcom's $103 billion offer

Fashion e-tailer Voonik asks staff to forgo 3 months' salary

EasyRewardz gets $2 million Series-A funding

'Anemic' iPhone 8 demand drags Apple shares lower

Lending platform Lenden Club gets Rs 3.5cr in Equity Investment

On festive sales, Flipkart says 65% clients from Tier-II cities