State Bank of India to Beta Test Blockchain Smart Contracts Next Month

The State Bank of India is planning to beta launch smart contracts and blockchain-based know-your-customer processes.

AccessTimeIconNov 20, 2017 at 7:30 p.m. UTC
Updated Sep 13, 2021 at 7:10 a.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

The State Bank of India (SBI) is planning a beta launch of smart contracts by next month, with blockchain-based know-your-customer (KYC) processes soon after.

According to Sudin Baraokar, head of innovation at SBI, the systems have been developed by Bankchain – a consortium of 27 banks that was launched in February to explore blockchain solutions for the banking sector.

Baraokar said that the beta launch of smart contracts in the bank's processes will enable "simple things" such as non-disclosure agreements, Economic Times reports.

He added:

"A lot of internal processes can be contracted. We do a lot of IT procurement, a lot of it can be implemented using blockchain."

Talking about the benefits of the Bankchain project, Baraokar said that the group shares technical expertise and allows SBI to focus on new solutions. These include smart contracts, which he said are "not regulatory heavy."

SBI has also revealed plans to set up an innovation center in Mumbai to explore new technologies like blockchain, artificial intelligence, machine learning, among others. The hub is expected to host hackathons and incubate startups, drawing on both internal experts and outside vendors.

The innovation center is currently in the design stage and is expected to launch by the middle of next year, according to Baraokar.

Back in May, Bankchain launched a KYC platform called ClearChain, aimed to allow banks to share information about customers. The system reportedly allows for the exchange of customer information, including data on wire transfers and investigatory reports, including Suspicious Activity Reports (SARs).

Code language image via Shutterstock

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.