Banks in India are collaborating on a brand new blockchain platform to get rid of financing hurdles for micro, small and medium size businesses (MSMEs), local daily news outlet Economic Times reported January. 28.

A total of 11 banks — together with second-biggest lender Kotak Mahindra Bank, state bank of India and ICICI Bank — are already meeting to discuss the implementation of a platform which will make it easier for businesses with smaller turnover to raise funds transparently.

The move is being organized under a association dubbed the “Blockchain Infrastructure Company.”

“Credit penetration is low for the [MSME] sector where the ticket size is usually believed to be between 10 lakh rupees [about $14,000] and 1 crore rupees [about $140,000],” viral Acharya, Deputy Governor of India’s central bank, the Reserve Bank of India (RBI), said at a conference last week.

India has wanted to expand its state-wide use of blockchain technology throughout recent years as a conversely hostile line on cryptocurrency persists.

In June 2018, the govt declared it planned to launch a blockchain project referred to as IndiaChain, which might seemingly permit private and state entities to create tools like payment apps while keeping track of huge amounts of data.

Little additional info has been released, whereas cryptocurrencies still languish in a gray area, as regulatory efforts see multiple delays.

In response to the RBI’s ban on servicing cryptocurrency businesses last July, Kotak Mahindra Bank recently went further than some others, allegedly blocking private account holders from dealing in cryptocurrency, Top Market Group reported.

Several days later, an identical report emerged involving India’s 1st digital bank, Digibank.

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