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To Avoid PNB like Scams, Infosys Partners With 7 Banks To Form a Blockchain Based Finance Network

Infosys | Finance Based Blockchain | India Trade Connect | Blockchain Updates | Blockchain India | Blockchain in Banking

Infosys, one of the software giants in India, has set up India Trade Connect, a blockchain-based trade network in India, in partnership with seven lenders, including Axis Bank, ICICI Bank, IndusInd Bank and RBL Bank. The other partner banks include Kotak Mahindra Bank, South Indian Bank and Yes Bank. The solution, India Trade Connect aims to increase the security and efficiency of the banking sector.

Surprisingly, since quite a while, the IT domain companies around the world have been drifting away from traditional IT services and experimenting with emerging technologies like Blockchain, deep learning, Artificial Intelligence, and more. TCS, IBM, Tech Mahindra, and even Microsoft  are the ones already in the game.

 Infosys said in a statement,

“The network is being used by the banks to run a successful pilot of Finacle Trade Connect, a blockchain technology based solution developed specifically to address the trade finance process requirements of banks.”

Finacle Trade Connect will enable increased automation and transparency, while helping efficiently manage risks in trade and supply chain financing operations, it added.

This news comes a few months after the Rs 1,400 crore (approximate) Nirav Modi-Mehul Choksi scam, where three jewellery firms defrauded India’s second biggest state-run lender Punjab National Bank scam. This scam has been often dissed at due to lack of transparency and accountability.

Infosys said the network is designed to digitalize trade finance business processes, including validation of ownership, certification of documents and making payments, while working on a distributed, trusted and shared network.

The statement added,

“The network will create new business opportunities for participating banks, while eliminating the inefficiencies in the existing trade processes and enabling everyone involved in a transaction to have a single source of the truth,”

In an interview with the Economic Times, Sanat Rao, chief business officer at Infosys Finacle, said,

“Because of the network effect, where a buyer, the buyer’s bank, the seller and the seller’s bank are all on the platform, it creates a single source of truth. 

Rajashekara Maiya, Finacle global head of product strategy, said in a telephone interview.

“With that kind of a capability, the technology can avoid all the fraud that could have taken place in a situation like Punjab National Bank,”

The number of applications of blockchain deployed around the world are countless, as every day sees new partnerships which are noble, efficient while also being cost effective.

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