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Despite a plethora of unclear regulations and restrictions, large corporations and banks in India are still adopting cryptocurrency – or at least some of the underlying technology – as a more reliable way to reconcile accounts, make payments , keep appropriate records and manage internal funds. According to a report by India Times, a number of Indian corporations are currently experimenting with blockchain technology as a means of keeping records.
The best companies in India Eye Blockchain for payments
Despite the traditionally hostile position of the Reserve Bank of India on cryptocurrency trading and its recent announcement that it will not launch the "Digital Rupee", cryptocurrencies still seem to have a future in India. In light of the revelations that the lack of adequate record keeping has contributed to the detection of IL & FS, larger companies are apparently willing to explore alternatives that ensure that all financial registers and contracts are properly documented.
The use of blockchain record keeping technology virtually eliminates the possibility of discrepancies, and it is this security feature that makes it particularly useful for large companies with multi-level data flow. While it is still being tested, the sources quoted by the India Times say the results look promising. According to them, if the final results are impressive, the companies involved are planning to increase the whole process to cover larger areas.
Some of the big names that make these moves include Hindustan Unilever, ABG Shipyard, HDFC Bank and Reliance Industries. Currently, several pilot tests are underway using DLT as a recording tool in the hope of balancing books at the end of the quarter or at the end of the year. Although there is not yet an advertised chronology for the proposed test and enhancement, stakeholders expect the blockchain technology to have a great future in Indian business space.
Speaking to the India Times, Sai Venkateshwaran, a partner and director of CFO Advisory at KPMG India, said:
In addition to greater efficiency and precision, [blockchain technology] has the potential to increase transparency levels for group treasury management as well as cost savings.
Crypto refuses to leave
Significant restrictions by the Reserve Bank of India (RBI) may still prove to be a challenge for these nascent implementations, but many experts believe these restrictions can be circumvented if corporations keep their transactions strictly at home. In addition to the high levels of cryptocurrency fraud occurring in India, regulatory concerns also fall into space due to perceived problems with taxation and accounting compliance.
Despite this, according to the report, company stakeholders remain convinced that getting regulators on their side in an economy that is expected to exceed the United States by 2030 is just a matter of time.
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