The Institute of Development and Research in Banking Technology (IDRBT), which is an arm of the Indian central bank, Reserve Bank of India, is reportedly working towards the development of a prototype model on a blockchain platform for banking-related activities.
AS Ramasastri, Director, IDRBT was quoted as saying, “We have been working on a model platform for blockchain applications for the government in banking. It will be documented and developed next year.”
This is an interesting development, given that in September last year, an RTI was filed by an Indian publication, on the “Crypto, Blockchain and AI Research Unit” and the reply sent was, “There is no new unit created formally in RBI for the purpose mentioned in RTI query. Therefore there is no information to furnish in the matter.”
The point of the platform is to build a platform that will facilitate tamper-proof digital transactions. The Institute along with other volunteering banks will also develop a small digital currency model using blockchain technology. Pilots will be rolled out in the coming days.
Earlier this year, we had reported that the body had come out with a roadmap to implement blockchain technology in the banking sector. The institute has been working with different stakeholders including government, banks and the industry for developing a blockchain platform that can serve as a common platform to launch varied banking applications.
Releasing its white paper on the blockchain technology, R Gandhi, former deputy governor of RBI said that the banking and financial sector is, “The banking and financial sector is experiencing cyber risks more because of the increased use of rapidly evolving, sophisticated, and complex technologies, wide use of third-party vendors, 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.”
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