Infosys Says Their New Blockchain Powered Network Will Stop Bank Frauds!
Can Infosys prevent banking frauds with blockchain?
Bank frauds are shaking up the system, and it is indeed desperate time.
We have reported that Indian banks are experiencing 1 banking fraud per hour, and approximately Rs 1.6 crore is lost to fraudsters per hour.
In the last, Rs 1 lakh crore has been officially looted, due to banking frauds.
Infosys, the leading provider of core banking solutions, whose software was used during the infamous Nirav Modi led PNB fraud worth Rs 14,000 crore, has now decided to stop this mess.
And Blockchain shall be the catalyst here, to stop banking frauds.
Infosys: Blockchain Will Stop Frauds!
Infosys has created a blockchain based trade network for banks, wherein transactions can be carried safely.
7 banks: Axis Bank, ICICI Bank, IndusInd Bank, RBL Bank, Kotak Mahindra Bank, South Indian Bank and Yes Bank have already joined this blockchain based trade network.
The name of this network is Finacle Trade Connect, and is an extension of their existing Finacle core banking solution.
In a statement, Infosys said, “The network is being used by the banks to run a successful pilot of Finacle Trade Connect, a blockchain technology based solution developed specifically to address the trade finance process requirements of banks,”
What Will Finacle Trade Connect Do?
Finacle Trade Connect will basically convert the basic and crucial banking operations into the secured blockchain network, and this will ensure that all transactions are safe.
Some of the banking operations which Finacle Trade Connect will perform are:
- Bill Collection
- Letters of Credit
- Open Account for Trade
- Customer to Customer
- Transactions for Trade
- Business to Customer transactions for Trade
- PO financing and Invoice financing
The statement added, “The network will create new business opportunities for participating banks, while eliminating the inefficiencies in the existing trade processes and enabling everyone involved in a transaction to have a single source of the truth”
Blockchain In India Banking
Blockchain has successfully embedded into the Indian banking system, and Infosys’ latest efforts to stop frauds is an extension of the same.
ICICI Bank was one of the first to use blockchain in banking, when they successfully processed a transaction, way back in 2016.
Although RBI has been against digital currencies, they are supporting blockchain in banking. Axis Bank is already enabling cross-country money transfers using blockchain; and even traditional banks are joining the bandwagon.
Will Infosys’ new blockchain based trade network ensure zero frauds in banks?
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