On 17 April 2018, a major private sector lender, ICICI Bank announced that it has signed up more than 250 Indian corporates on its customised blockchain platform for international and domestic trade finance transactions. The private lender is focussed on promoting blockchain platform in the Indian banking industry.
In August of 2016, ICICI was the first bank in India to carry out pilot transactions in partnership with Emirates NBD in international trade finance and remittance. From then on to till now, over 250 corporates have signed up for ICICI Bank’s blockchain platform in order to benefit from the secure, less time-consuming, and cost-efficient method of carrying out international and domestic trade transactions.
The transactions include payments to domestic vendors in other cities for raw materials and cross-border remittance for salary payments to employees of a company. According to the CEO and MD of ICICI Bank, Chanda Kochhar, the blockchain technology can simplify the trade transactions by having all the stakeholders on one platform. ICICI Bank is collaborating with other banks to create a comprehensive ecosystem in the banking industry via blockchain.
ICICI Bank’s blockchain digitises the paper-intensive trade finance transaction process. The digitisation of the paper-intensive overseas trade finance process enables the banks and other participants to have access to a single source of information. Furthermore, the sellers and buyers across international and domestic locations, and all ICICI bank branches in India and abroad can view the data in real time. It allows the parties to track documentation, authenticate ownership of assets, and execute trade finance transactions via a series of coded and secure digital contracts. The participants can also check their application status online.