Reserve Bank of India’s Research Arm Proposes Blueprint On Blockchain Implementation

Blockchain, News | January 27, 2019 By:

The Reserve Bank of India’s research and devlopment arm has published a blueprint suggesting a broad roadmap on adoption of blockchain technology in the local banking sector.

The Institute for Development and Research in Banking Technology (IDRBT), which conducts applied research and experimental development in the area of banking technology, suggested the implementation of blockchain in various business and organizational functions to ensure interoperability among different entities.

Since there is currently no regulatory guidelines in place for the adoption of blockchain technology by banks and financial institutions in India, IDRBT has proposed a “collaborative approach” among various stakeholders in a network and called for “a codified set of rules for smooth operations and collaboration.” The institute also proposed the formation of a steering committee that will oversee the implementation of a blockchain-based platform.

In addition, the institute also wants to create an industry-specific business value framework for analyzing the suitability of business applications to migrate to the blockchain-based business network. According to the IDRBT, the framework will be designed to prioritize projects with high business value and filter out the less impactful ones.

“Regulatory supervision can also be built in within the governance structure,” the institue said. “These steps are expected to help drive increased adoption of new technology among industry participants and continuous valuation and change management will help in bringing in required stability and sustainability of the new framework.”

The IDRBT has already laid out a number of viable applications for blockchain technology in the country. Last year, the institute piloted a proof-of-concept for settling trade finance transactions via a distributed network, with participants including banks and payment vendors.