The Cabinet of the Union of India approved a Memorandum of Understanding (MoU) on collaborative research of distributed ledger technology (DLT), the local daily newspaper ANI reported on September 12th. The Cabinet of the Union is the supreme decision-making body in India made up of ministers and led by the prime minister, Narendra Modi.
The MOU, a co-operative initiative within the BRICS interbank cooperation mechanism, aims to promote a better understanding of DLT and define areas where technology can be implemented to improve efficiency operations.
The research will be conducted jointly by the Export-Import Bank of India (Exim Bank) and the banks of the other BRICS member states; Banco Nacional de Economic and Social Deservolvement (BNDES, Brazil), China Development Bank (CDB), State Corporation Development Bank and Foreign Economic Affairs (Vnesheconombank, Russia), and the Development Bank of Southern Africa (DBSA).
The MOU was initially proposed at the 10th BRICS international summit held in Johannesburg in July, whose main objective was cooperation in economic development "facing the fourth industrial revolution". The banks therefore agreed to jointly study the DLT "in the interest of the development of the digital economy". Mikhail Poluboyarinov, first vice-chairman and member of the board of directors of Vnesheconombank, said of the memorandum of understanding:
"The current agreement allows the development banks of the BRICS countries to study the applications of innovative technologies in Infrastructure Finance and Optimization of Banking Products. "
In that month, the Indian state of Telangana also signed MOU with blockchain companies to eventually implement t technology in state applications to optimize government services. Reportedly, the measure aims to increase the transparency and efficiency of public services provided by the state.