RBI Mulling to Develop Open Source Blockchain-based Payment Solution

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The National Payments Corporation of India (NPCI), which was incorporated by the Reserve Bank of India (RBI) to function as a umbrella hub for all electronic retail payment systems in India, has been proposed to develop highly scalable blockchain based payment solution to further strengthen digital payments in the country.

Promoted by 10 banks in India under the aegis of Indian Banks Association (IBA), NPCI has been proposed to develop a resilient, real time and highly scalable blockchain solution using an open source technology/ framework/solution and for same NPCI has floated an Express of Interest (EOI) in order to enable bidders to propose their capability for developing distributed ledger technology/ blockchain in the payment domain.

Speaking about open-source blockchain framework/platform, which the NPCI intended to use for developing its upcoming blockchin solution, there are 4 major blockchain software licensed under open source licenses are — Ethereum (GNU LGPLv3), Bitcoin Core (MIT License), Hyperledger and Corda.

NPCI has invited bids for selection of Liaisoning Consultant (LC) to acquire various end-to-end statutory permissions for Construction of Captive Data Center (CDC) in Chennai and Hyderabad.

NPCI, which has developed instant payment system ‘Unified Payments Interface (UPI)’, provides services like cheque clearance and facilitates digital payments across India.

As per a recent report of global consultancy firm PwC, India would be one of the world’s blockchain leaders by 2023.

Earlier this year, major 11 banks in India had announced to have joined forces to launch the country’s first blockchain-linked funding for small and medium enterprises (SME). The planned blockchain network will allow the banks to access public credit data and help them make their lending more judicious and less risk-based.

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Last month, IBM has launched IBM World Wire, a blockchain based real-time global payments network for regulated financial institutions.

Last October, India’s ICICI Bank became only bank from India to have had join JP Morgan’s proprietary blockchain platform called Interbank Information Network (IIN), which is built using Quorum, a permissioned (closed ecosystem) variant of the Ethereum blockchain.

Source – Business Today

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