15 banks to start new trade finance system using blockchain tech

Fifteen banks have come together to form a new company which will use blockchain technology to process inland letters of credit (LCs) in a first such initiative. Bankers said that the new system will verify data using invoices on goods and services tax (GST) and e-way bills which will quicken transactions and also eliminate risk of frauds. The company called Indian Banks’ Blockchain Infrastructure Co Pvt Ltd (IBBIC) will have fifteen shareholders holding an identical 6.66% stake in the company. These banks include ten private sector, four public sector and one foreign bank.