State Bank of India Planned to Navigate the Test Blockchain-based Smart Contracts
November 22, 2017 12:02 pm
The State Bank of India (SBI) has planned to test a Blockchain-based smart contracts system that was developed by the BankChain consortium in December 2017. The Consortium, which was launched in February, has been composed by 27 banks those which aims to develop the Blockchain Solutions for the banking industry in the nation.
Sudin Baraokar, SBI’s head of innovation, says that the smart contracts will be tested for “simple things” such as undisclosable agreements. He included that the majority of their internal process can be innovated using the technology.
“A lot of internal processes can be contracted. We do a lot of IT procurement, a lot of it can be implemented using Blockchain.”
SBI’s planned BankChain initiatives and innovation center
Baraokar says that State Bank has already planned to start an innovation hub in Mumbai. The hub will be used for conducting the research and the development (R&D) on new technologies such as the artificial intelligence, machine learning, and the Blockchain Technology. The features have been also designed to host the hackathons and incubate startups. The initiated center is currently working on the designing phase and it is scheduled to be launched in mid-2018.
At the same time, the BankChain consortium has introduced the Know Your Customer (KYC) platform dubbed ClearChain in May 2017. The platform has intended to allow banks to share the data of their customers among the members, Along with the information which can be shared are data on wire transfers and investigatory reports, including the Suspicious Activity Reports (SAR).
The BankChain consortium was established in February 2017. SBI was the first member of the group. Afterward, the organization already has 22 Indian Banks including DCB Bank, Axis Bank, and ICICI Bank, as well as the five Middle-East-Based banks as the members.