The Indian Institute for Development and Research in Banking Technology (IDRBT) has published a blueprint on blockchain implementation in the banking sector, as reported by the Indian daily Newspaper the Financial Express on Tuesday, Jan. 22.
Established in 1996 by the Reserve Bank of India (RBI), IDRBT conducts research and experiments in the banking sector. Reportedly, the organization is working with the Indian government, banks and industry players to build an interoperable blockchain platform.
While India doesn’t really have set regulations in place for the blockchain technology as of now, the blueprint will probably pose as a roadmap on the technology’s adoption and to establish protocols for the financial institutions to interact via decentralized platforms.
R Gandhi, the Former RBI Deputy Governor stated that banking and financial sector are vulnerable to more cybersecurity risks due to the “increased use of rapidly evolving, sophisticated, and complex technologies… increased use of mobile technologies by customers, including the rapid growth of the Internet of Things (IoT) and the heightened cross-border information security threats.”
According to another publication Business Standard, the blueprint further describes the built-in mechanism for regulatory supervision of the blockchain ecosystem. IRDBT asserts that this will contribute to mass adoption of the technology
Indian love-hate relationship with the technology
The Indian government has had a mixed approach to crypto-related technologies, especially in 2018. While RBI exercised a ban over all local banks from dealing with cryptocurrencies in April, it’s own report published last month quotes that cryptocurrencies are not a threat.
When it seems, the government is warming up, Indian police in the state of Jammu and Kashmir issued a warning related to cryptocurrency investments, pointing that they are not regulated by the government. Moreover, reports have also surfaced that several Indian banks including Kotak Mahindra Bank, India’s second largest private sector bank by market cap, reportedly imposed crypto restrictions.
However, Blockchain is making its own niche in the country, Tech giants Mahindra employs blockchain technology for grapes export business and another major Indian conglomerate Reliance Industries recently acquired 5.56% Stake In UK Based Blockchain Startup.