Large Businesses and Banks in India Eyeing Blockchain for Payments

By Kapil Gauhar

In spite of unclear regulations and restrictions, India’s biggest conglomerates are still embracing cryptocurrency as a more reliable way to make payments and manage funds.

As indicated by a report in the India Times, various Indian corporations are currently trialling blockchain technology as a means of record keeping.

Top Indian Firms Embracing Blockchain for Payments

In spite of the traditionally hostile stance of the RBI on cryptocurrency exchange activities, cryptocurrencies still appear to have a future in India.

In the light of revelations which contributed to the IL&FS takeover, biggest corporations are apparently willing to explore alternatives that will make sure that all financial records and contracts are documented properly.

Using this technology for record-keeping practically removes the possibility of discrepancies, and it is this security functionality which makes it particularly useful for large corporations with a multi-level data flow.

While the technology is still in its testing phase, sources quoted by the India Times say that the results look promising.

Reportedly, some of the big names of the industry, which are making such moves incorporate ABG Shipyard, Hindustan Unilever, Reliance Industries, and HDFC Bank.

Currently, several pilot tests are on the run, which use DLT strictly as a record-keeping tool with hopes to balance the books either at the end of the quarter or at the year’s end.

Though there is no publicized timeline for testing, yet stakeholders expect that blockchain technology will have a big future in the Indian corporate space.

A Partner and Head of CFO Advisory at KPMG India, Sai Venkateshwaran, said while speaking to the India Times –

Apart from greater efficiency and accuracy, [blockchain technology] has the potential to bring enhanced levels of transparency for group treasury management and also cost savings.

Crypto Refuses to Surrender

Major restrictions by Reserve Bank of India may yet prove to be a daunting challenge for such nascent implementations, but many experts have the opinion that such restrictions can be circumvented in case corporations keep transactions strictly in house.

In addition to high levels of digital currency fraud taking place in India, regulatory concerns also fall in the space owing to the perceived issues with taxation as well as accounting compliance.

In spite of this, corporate stakeholders remain persuaded that getting financial regulators on their side in an economy projected to outshine the US by 2030 is just a matter of time, according to the report.