18 Indian banks buy stake in new blockchain start-up IBBIC
- 18 banks in India have come together to set up a new fintech firm named ‘IBBIC Pvt Ltd (IBBIC)’, to make use of blockchain technology for the financial services sector.
- IBBIC was incorporated in May 2021 as a financial technology company with an objective of providing a platform for exploring, building and implementing Distributed Ledger Technology (DLT) solutions including the development of DLT platforms, applications, ventures for the Indian financial services sector.
- IBBIC will use Infosys Finacle Connect platform to digitise and automate inter-organisation trade finance processes, including processing inland letters of credit (LCs)..
- The banks includes RBL Bank, ICICI Bank, HDFC Bank, Kotak Mahindra Bank, Axis Bank, IndusInd Bank, Yes Bank, South Indian Bank, Federal Bank, IDFC First Bank, State Bank of India (SBI), Bank of Baroda (BoB), Indian Bank, Canara Bank, IDBI Bank, Punjab National Bank, Union Bank of India and Standard Chartered.
- Almost every bank have picked up equal stake of 5.55% in IBBIC, by making an investment of Rs 5 lakh each.
- Each bank will invest Rs 5 Crore in the company, making the total capital of the company to Rs 75 Crores.
Points to Remember:
- ‘IBBIC Pvt Ltd (IBBIC)’ is a new blockchain-based startup launched by how many banks? 18
- Name the fintech firm launched by 18 Indian banks to make use of blockchain in financial services sector?