India's 'BankChain' Consortium Launches Blockchain KYC System

A blockchain consortium in India centered around banking applications has unveiled a new system for sharing information about customers.

AccessTimeIconMay 30, 2017 at 5:40 p.m. UTC
Updated Sep 11, 2021 at 1:23 p.m. UTC
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A blockchain consortium in India centered around banking applications has unveiled a new system for sharing information about customers.

Dubbed 'ClearChain', the project is being spearheaded by the BankChain consortium, which was launched in February with the backing of institutions like the State Bank of India (SBI) and ICICI Bank, among others. The group is working with Primechain Technologies, a Mumbai-based startup, as well as IBM and Microsoft on the software side.

According to The Times of India, the ClearChain system allows for the exchange of customer information, including data on wire transfers and investigatory reports, including Suspicious Activity Reports (SARs).

The Times further reported that ClearChain is one of several projects being pursued by the group, others of which include efforts to reduce fraud in business lending.

Sudin Baraokar, SBI’s head of innovation, told the paper:

"We are exploring how blockchain can help in reducing fraud where a borrower takes a loan against the same asset from multiple banks. We are also looking at inward remittances and the use of blockchain as an alternative to systems like SWIFT."

The project is the latest to emerge from India's financial sector – with some interest coming from the Reserve Bank of India as well – which has spent much of the past two years experimenting with domestic blockchain applications.

Other firms in India, including its major stock exchange, are also looking at the tech.

Image via Shutterstock

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