India's YES BANK recently deployed a multi-nodal blockchain transaction to fully digitise vendor financing for Bajaj Electricals.
Leveraging Hyperledger Fabric supported by IBM, the solution allows Bajaj Electricals to digitise the process for discounting and disbursal of funds to its vendors by integrating seamlessly with YES BANK's systems.
The solution also facilitates an automated debit from Bajaj Electricals' account by YES BANK. The business logic and rules are captured in a smart contract (Chain Code) developed by fintech startup Cateina Technologies.
"This solution enables us to do timely processing of the vendor payment without physical documents or manual intervention. It also enables us and our vendors to track the status of transactions in real time," Shehkhar Bajaj, Managing Director, Bajaj Electricals explained in a press release.
YES BANK is not the first Indian bank to implement blockchain. Last October, ICICI bank made use of blockchain solutions for international trade finances and remittances.
Moving forward, YES BANK is exploring use cases for blockchain implementation towards 'Letter of Credit' and Documentary Collections, Foreign Remittances and Partnering with Correspondent Banks for Trade Finance among others.
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