In the banking industry, blockchain technology has transformed traditional banking procedures and paved the way for increased security, efficiency, and transparency. It has moved beyond its status as a trendy term. Leading Indian banks like ICICI Bank, State Bank of India (SBI), and YES Bank have been at the front of this technological revolution, leading creative blockchain projects to transform the market for banking services.
State Bank of India (SBI) has been exploring and integrating blockchain technology in various aspects of its operations to foster a more secure and efficient banking environment. Below are some of the key implementations and partnerships concerning blockchain technology:
SBI Bank, along with multiple other Indian banks, such as Kotak Mahindra Bank, YES Bank, Axis Bank, and HDFC Bank, had introduced a UPI interoperability feature on the digital rupee application. The major development aims to boost the adoption of RBI’s Central Bank Digital Currency (CBDC) pilot project. The feature lets users scan any QR code to make payments through the ‘eRupee by SBI’ application.
ICICI Bank has been making strides to incorporate blockchain technology into its operations to enhance the banking experience for its customers. Here’s a summary of how they are implementing blockchain technology based on various sources:
ICICI’s TradeChain is a digital, end-to-end Blockchain solution for managing clients’ domestic trade transactions on an “Open Account” basis and under “Letter of Credit.” The main objective of the solution is to offer customers effective working capital management options. Additionally, it offers digital document presentation, audit trails, real-time transaction tracking, reduced transaction times, and transparency of information. It facilitates the full trade transaction lifecycle, from the issue of the purchase order to its acceptance and from the raising of the commercial invoice to its acceptance and payment.
YES Bank has been integrating blockchain technology into its operations to digitize various banking processes and improve efficiency. Here’s a detailed breakdown of how YES Bank is implementing blockchain technology based on information from multiple sources:
By integrating the Unified Payments Interface (UPI) with the Reserve Bank of India’s (RBI) Central Bank Digital Currency (CBDC) app, Yes Bank, a well-known Indian bank, has made a big advancement in the payment sphere. Customers of Yes Bank may now quickly scan any UPI QR code using the bank’s Digital Rupee app thanks to this integration, ushering in a new era of digital convenience. Over 260 million Indians already use UPI to make payments, making it a huge success in the country.
In the late 2022, the RBI launched a retail pilot of the digital rupee, highlighting its trustworthiness, security and settlement finality that resembled the features of physical notes. Unlike traditional cash, the digital rupee does not attract any interest. The initiation is expected to inspire increased adoption of the digital rupee consistent with the RBI’s vision of an inclusive and efficient financial system.
These implementations signify a major leap towards digital transformation and operational efficiency, positioning SBI, ICICI Bank and YES Bank, and other leading banks at the forefront of blockchain adoption in the banking sector.