State Bank of India, the world’s largest bank, is in the news today after a report by the Economic Times revealed that the country has joined JP Morgan’s much-hyped blockchain payment network. SBI’s alliance with JP Morgan’s Liink (not to be confused with LINK) is likely to help minimise consumer transaction costs and transaction times for cross-border payments.
Thanks to the same, the State Bank of India is now the country’s first bank to live on the network. SBI was India’s only financial services representative in the Fortune Global 500 ranking last year, with current developments expected to boost its growth over the next few years.
In reality, the association of SBI with a blockchain-powered network is in line with the government’s strategy to accept the potential benefits of technology. Over the past few months and years, while India’s central bank and government have remained strikingly inconsistent about crypto, their outlook for blockchain technology has not changed much.
According to Venkat Nageswar, Deputy Managing Director of SBI,
“We have undergone a significant digital transformation in recent years and continue to add new technologies to create real value to daily operations.”
Nageswar added that SBI “is looking forwards to a closer partnership with JP Morgan on implementation and exploring the application as part of the network to better serve our clients.”
The bank has incorporated Liink into all its activities, which will help it share payment-related details with other institutions.
Although SBI is definitely the first Indian bank to join Liink, it is unlikely to be the last, with JP Morgan’s representative announcing that it is working to extend its presence in the country on the blockchain. Following this growth, the State Bank of India has joined 100 other multinational banks, all of which are already living on Liink.
It should be noted, however, that SBI is not the first Indian bank to adopt blockchain technology. In reality, the relationship between the Federal Bank of India and Ripple has been rumoured for a long time, with official disclosure released by the Federal Bank. A few weeks ago, the two parties entered into a tripartite agreement with the UAE LuLu exchange to increase “real-time payments from the UAE to India.”
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