Blockchain can improve India's trade finance system but must address certain challenges: Report

Banks in India should start conducting proof of concept with blockchain technology to get a deeper understanding of its likely implication in trade and finance.

IANS March 15, 2018 16:59:05 IST
Blockchain can improve India's trade finance system but must address certain challenges: Report

New Delhi: Blockchain along with other digital technologies including artificial intelligence (AI), machine learning and robotic process automation could resolve inefficiencies in the country's current trade finance system and make the process efficient, a recent study said.

Titled "Role of trade finance for inclusive growth", the joint study by Assocham and professional services firm Deloitte said here on Thursday: "Blockchain's application for identity management and 'know your customer' (KYC) looks quite promising."

Blockchain can improve Indias trade finance system but must address certain challenges Report

Representational image. Reuters.

Banks in India should start conducting proof of concept with blockchain technology to get a deeper understanding of its likely implication in trade finance if implemented in the overall system, the study noted.

However before a widespread adoption, blockchain must address certain implementation challenges - onboarding users, regulatory acceptance, changing role of banks, infrastructural issues and firms and businesses operating on a small scale, it said.

It added that innovation in AI is also moving very fast and it too has enormous application to solve real problems. It could be used to detect transactions quality, or opportunity to market cross channels, to ensure banks are utilising their resources optimally, the study said.

On the state of the country's trade, the study said, while 2017 saw global trade expansion as a consequence of acceleration in trade growth in the first six months of the year, India's slow growth of trade has been a concern.

"Many are attributing this short term down turn as a negative fallout from the reforms - demonetisation and goods and service tax (GST)," it said.

The report however said that fine-tuning GST data that feeds information technology platforms will have a significant impact on trade finance.

Updated Date:

Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.

also read

Atmanirbhar Bharat need of the hour, every Indian entrepreneur will battle challenges with fresh spirit: KV Kamath tells Network18
India

Atmanirbhar Bharat need of the hour, every Indian entrepreneur will battle challenges with fresh spirit: KV Kamath tells Network18

India is a land of opportunities and so there is going to be no shortage of things to do which is unlike several other countries, veteran banker KV Kamath tells Network18, Group Editor-in-Chief, Rahul Joshi in an exclusive interview.

'Absolutely no! Need time to be with family': KV Kamath tells Network18 on possible role in govt
India

'Absolutely no! Need time to be with family': KV Kamath tells Network18 on possible role in govt

My thoughts are always with the country, veteran banker KV Kamath tells Network 18, Group Editor-in-Chief Rahul Joshi in an exclusive interview.

Only way a bank can survive is by growing or else NPAs will become unmanageable: KV Kamath tells Network18
India

Only way a bank can survive is by growing or else NPAs will become unmanageable: KV Kamath tells Network18

The interest rates have started dropping, but they need to drop even further if the banks have to come around without too much pain, veteran banker KV Kamath tells Network18 Group Editor-in-Chief Rahul Joshi in an exclusive interview.