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ICICI Bank executes banking transactions on blockchain in partnership with Emirates NBD

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DQINDIA Online
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ICICI Bank, an Indian private sector bank by consolidated

assets, announced that it has successfully executed transactions in

international trade finance and remittance using blockchain technology in

partnership with Emirates NBD, a leading banking group in the Middle East.

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ICICI Bank is the first bank in the country and among the first few globally

to exchange and authenticate remittance transaction messages as well as

original international trade documents related to purchase order, invoice,

shipping & insurance, among others, electronically on blockchain in real

time. The usage of blockchain technology simplifies the process and makes it almost instant-to only a few minutes. Typically, this process takes a few

days.

ICICI Bank executed these pilot transactions via its blockchain network with Emirates NBD on a custom-made blockchain application, co-created with EdgeVerve Systems, a wholly owned subsidiary of Infosys.

Ms. Chanda Kochhar, MD & CEO, ICICI Bank said, "ICICI Bank has a rich legacy of leveraging the latest technology to bring in new paradigms in banking.

Akin to pioneering new technologies in the country like software robotics,

mobility and near-field communication among others, I am delighted that we are the first bank in India and among few globally to set up a blockchain

application. We have also marked a milestone by piloting a blockchain

network with Emirates NBD as a partner and have successfully executed

cross-border open account trade finance and remittance transactions. I

envision that the emerging technology of blockchain will play a significant

role in banking in the coming years by making complex bilateral and

multi-lateral banking transactions seamless, quick and more secure.

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Going forward, we also intend to work on expanding the blockchain ecosystem and create common working standards to contribute to the commercial adoption of this initiative."

The blockchain application co-created by ICICI Bank replicates the

paper-intensive international trade finance process as an electronic

decentralised ledger, that gives all the participating entities including

banks the ability to access a single source of information. This enabled all

the parties, viz, the importer in Mumbai; ICICI Bank, Mumbai; the exporter

in Dubai and Emirates NBD, Dubai to view the data in real time. It also

enabled them to track documentation and authenticate ownership of assets

digitally, as an un-alterable ledger in real time. This facilitated the

stakeholders to execute a trade finance transaction through a series of

encrypted and secure digital contracts. Further, it allowed each participant

to check online the status of the application, transfer of title and

transmission of original trade documents through a secure network, while

preserving client and commercial confidentiality.

It brings in the improved convenience of accurate and quick transactions

eliminating manual intervention, courier of paper documents across countries and verification through trade intermediaries. This is in contrast to the current process which involves a complex and lengthy paper trail that

requires international shipping & courier. The pilot transaction was

executed to showcase confirmation of import of shredded steel melting scrap by a Mumbai-based export-import firm from a Dubai-based supplier.

The second initiative involved a transaction on the blockchain application

that enabled an ICICI Bank branch in Mumbai to remit funds to an Emirates

NBD branch in Dubai in real time. It could do so as the blockchain

technology is equipped to send real time financial message to the recipient

bank allowing the remittance transaction to take place instantly. The pilot

transaction eliminates the need for financial messaging between banks and

heralds the convenience of instant cross-border remittances for retail

customers. Currently, international remittances take a few hours to upto two days. It is also envisaged to reduce the cost of remittance for customers as well as banks.

The execution of the country's first blockchain transactions come close on

the heels of a slew of technology-led innovative services introduced by the

bank recently. The list includes the introduction of Software Robotics to

power banking operations, the country's first NFC enabled contactless debit and credit cards, 'Pockets', India's first digital bank on mobile phone and largest wallet by a bank, fully automated and round-the-clock 'Touch

Banking' branches, Tab Banking, banking on social media (Facebook and

Twitter), and 'iMobile Smart Keys' - Asia's first payment service using a

smart phone keyboard.

icici emirates-nbd
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