State Bank of India (SBI) is an Indian multinational and financial statutory body and it is 43rd largest bank in the world. The headquarters of SBI is situated in Mumbai, Maharashtra. State Bank of India is expected to tied up with JP Morgan to use new technology for the better services. SBI to use the US bank’s blockchain technology to boost up all foreign and oversea transactions.
The tie up of SBI with JP Morgan’s blockchain is based on payment network which means, after this tie up it is expected that customer’s transaction costs will be reduced and also, it will take less time to complete any payment. Another is, time taken to solve the problems related to cross border payments related inquiries can be reduced from a night or 24 hours to a few hours. This will help beneficiaries to their cross-border payments faster and easily.
Some higher authorities of State Bank of India (SBI) said that SBI is going to be the first bank in India to go live on the network and for providing good quality services to customers, it looks for a closer partnership with JP Morgan by implementing new technologies. SBI will also go for updating its technology and to add new technologies to create real value to daily activities and operations.
Liink is the Global Banks’s blockchain technology which establishes a relationship between financial institutions, corporates and all companies which are subscribing to it internationally, now SBI to start Liink into its operations to exchange its information of payments with other financial institutions. There are about 100 banks which are attached with this network, and there are many other lenders, both, government and private, which are in touch with JP Morgan for the same.
Experts said that many banks from different countries including lenders from China and Africa are adopting this system for cross border transactions. Nitin Sharma, partner at Antler Global said that the World Bank has reported that average cost of bank-led remittances is 10 percent globally, which is very high. Projects such as Ripple or various bank consortiums have proposed that the need for correspondent banking is directly removed by a distributed ledger (or a new blockchain) exchanged between banks and can thus reinvent cross-border remittances or trade cash flows for the new era. Liink will also allow participating banks, even before making payments, to pre-validate the account and check the formatting of the message for compliance with regulatory standards at the beneficiary’s location. This method will help to mitigate the rejection/fraud of transactions. This is a move that will garner more customer satisfaction.
