Project Overview

Distributed ledger technology (DLT) refers to the protocols and supporting infrastructure that allow computers in different locations to propose and validate transactions and update records in a synchronised way across a network. While such protocols are not new, what makes DLT unique is that these networks of databases can operate smoothly and securely without necessarily being controlled and administered by a central party that is known to and trusted by every participant. While leveraging DLT to address pressing issues in the global banking sector is a well-documented idea, the lack of credible PoC has eluded application at scale. 

RBIH’s DLT pilot project brought together fintechs, banks, and fabric layer partners to work towards a Proof of Concept (PoC) for the introduction of a DLT solution. The use case for this project was issuance of Letters of Credit (LC). Based on the insights from the PoC, a working group was constituted, consisting of participants from member banks of Indian Banks’ Digital Infrastructure Company (IBDIC) Pvt Ltd.

Findings from the POC are available here