Indian government gives go-ahead to Exim Bank’s blockchain research with BRICS-based banks

Indian’s Union Cabinet has given its approval to Export-Import Bank of India (Exim Bank) to conduct collaborative research on distributed ledger and blockchain technology with participating member banks under BRICS.

Led by Prime Minister Narendra Modi, the Union Cabinet comprises of senior government officials and exercises executive authority in the Republic of India.

BRICS is an association of five major emerging economies – Brazil, Russia, India, China, and South Africa.

According to the official release, the Union Cabinet has given its ex-post facto approval for the Memorandum of Understanding (MoU) on the blockchain-focused research signed by Exim Bank under the BRICS Interbank Cooperation Mechanism. Participating banks include Banco Nacional de Desenvolvimento Economico e Social (BNDES, of Brazil), China Development Bank (CDB), State Corporation Bank for Development and Foreign Economic Affairs (Vnesheconombank, of Russia) and Development Bank of Southern Africa (DBSA).

“The MoU intends to enhance understanding of Distributed Ledger/Block Chain technology, through the joint research efforts to identify areas within respective business operations where it may have the potential for applications aimed at enhancing the operational efficiencies,” the statement reads.

Prime Minister Narendra Modi has been encouraging the adoption of blockchain technology for quite some time. In February, he said that “disruptive technologies such as blockchain and the Internet of Things, will have a profound impact in the way we live and work. They will require rapid adaption in our workplaces.”