The Institute for Development and Research in Banking Technology (IDRBT) has 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.
The blueprint suggests the adoption of the new technology in the various businesses and organisational functions along with common protocols to ensure interoperability among different entities. At current, there are no regulatory guidelines in place for adoption on blockchain in banks and financial institutions and this blueprint by IDRBT will help banks to move forward with its implementation.
The main issues which banks faces currently is lack of interoperability. With blockchain, it has a far superior approach to build a true ecosystem and a common platform for all the stakeholders.
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.”
Further, he said, “that data security and data privacy have become a vital point of discussion. There are two facets of data privacy – one is, data privacy in a commercial context and the other is in a democratic and human rights context. The general trend is that data privacy is a fundamental right of the individuals and any unconsented use by entities would result in heavy penalties.”
The report has also sought a solution for problems like storage and access to biometric data using the technology.
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