SWIFT India has partnered with the fintech MonetaGo company to drive a distributed ledger (DLT) network designed to improve the efficiency and security of financial products, according to a press release published on 20 November.
SWIFT India is a joint venture consisting of SWIFT SCRL (Society for Worldwide Interbank Financial Telecommunication) and a number of major Indian and international banks, including HDFC Bank and Bank of India. The organization provides messaging services to domestic market infrastructures, banks and companies.
According to the announcement, the new program based on MonetaGo's financial services network technology will be integrated through the standardized SWIFT financial messages.
Banks will probably implement a shared network of distributed registries, which meets industry-level data governance, security and confidentiality requirements to improve the efficiency and security of their financial products and procedures.
According to Kiran Shetty, CEO of SWIFT India, the company will digitize business processes, while MonetaGo will provide "fraud mitigation solutions to avoid double funding and verify the authenticity of the electronic invoice". E-way Bill is an electronically generated invoice for the specific movement of assets valued at more than 50,000 rupees ($ 700).
"Given India's focus on a digital infrastructure supported by both policy and technological innovation, it is logical that large institutional actors are interested in these products and initiatives," said Jesse. Chenard, CEO of MonetaGo.
In September, the Council of Ministers of India approved a Memorandum of Understanding (MoU) on collaborative research of DLT, with the aim of promoting a better understanding of DLT and defining areas where technology can be implemented to improve operational efficiency. The research was to be conducted jointly by a number of leading banks "in the interest of digital economy development".
In August, Cointelegraph reported that India's central bank would plan to improve its understanding of cryptocurrency and blockchain technology, presumably by creating a unit dedicated to "researching" phenomena, "to check what can be adopted and what not ".
In March 2018, SWIFT published a report on how a Proof-of-Concept (PoC) DLT can help reconciliation of the Nostro account. The results showed that DLT is able to provide the necessary reconciliation functions of the Nostro accounts while Damien Vanderveken, SWIFT's Head of Research and Development, said: "The PoC went very well, demonstrating the fantastic progress made with DLT and the Hyperledger fabric in particular. "