The Indian banking ecosystem is expected to witness improvements in the coming months after financial messaging giant SWIFT India partnered with fintech firm, MonetaGo to pilot a new Distributed Ledger Technology (DLT) network.
The landmark project was revealed in a press release by MonetaGO on Nov 20 and described as one that will benefit all Indian banks. It will be a shared distributed ledger network that combines the power of MonetaGO’s financial services and the standard of SWIFT’s messaging system.
Such a combination will allow the new partners to provide “industry-level governance, security, and data privacy requirements” according to the release. This will, in turn, make many financial products more efficient and secure as the banks roll it out to clients.
Speaking on the nature of the partnership, Mr. Kiran Shetty CEO of SWIFT India mentioned that his firm will provide trade digitization while MonetaGo would provide “fraud mitigation solutions to avoid double-financing and check the authenticity of e-way Bill.” MonetaGO issues electronic bills for movement of goods worth 50,000 rupees ($700).
For MonetaGo CEO, Jesse Chenard, the fact that big industry players are getting involved in the project is a highlight. This involvement means that the “work is going to positively impact the information available to the banking industry at large." he said
Blockchain And DLT Efforts In India
The latest efforts to use DLT in India will complement efforts already made by the Union Cabinet, a supreme decision-making body in the country, to research DLT and its potential to improve the economy. Back then in September, the body signed an MOU with several leading global banks with the aim of exploring DLT to develop India’s “digital economy.”
The Central Bank of India has also reportedly set up a team to research blockchain and cryptocurrencies and how they could impact the financial system positively.