SWIFT India, a joint venture established by SWIFT SCRL (Society for Worldwide Interbank Financial Telecommunication) and a number of major Indian and international banks, including HDFC Bank and the Bank of India partners with fintech firm MonetaGo to pilot a distributed ledger (DLT) network designed to improve the efficiency and security of financial products.
According to a press release published Nov. 20, the new program based on MonetaGo’s financial services network technology will be integrated through standardized SWIFT financial messages. The banks involved will employ a shared distributed ledger network to comply with industry-level governance, security and data privacy requirements. This will, in turn, improve the efficiency and security of their financial products and procedures.
The CEO of SWIFT India, Kiran Shetty, stated that the company will digitize trade processes, while MonetaGo will provide “fraud mitigation solutions to avoid double-financing and check the authenticity of e-way Bill.” E-way Bill is an electronically generated bill for the specific movement of goods with a value more than 50,000 rupees ($700).
The CEO of MonetaGo, Jesse Chenard said:
“Given India’s focus on a digital infrastructure which is supported by both policy and technological innovation, it makes sense that large institutional players are interested in these products and initiatives.“
A Memorandum of Understanding (MoU) on the collaborative research of DLT has approved the Union Cabinet of India in September. It was aimed at achieving a better understanding of DLT and its use cases. Leading banks of the country also participated in research “in the interests of the development of the digital economy.”