India’s first blockchain-linked funding project for small and medium enterprises (SMEs) is going to be rolled out by a consortium of 11 banks called Blockchain Infrastructure Company (BIC).

According to Economic Times, the representatives from 11 banks, including second-biggest lender Kotak Mahindra Bank, State Bank of India and ICICI Bank, have been arranged several meetings to propose a live network to speed up supply-chain financing.

The blockchain-based network will enable the lenders to access directly the public credit data. The network will also remove the information hierarchy between corporations and SME lenders seeking banks’ credit. 

Abhijeet Singh, head of business technology at ICICI Bank, said that the new blockchain-linked funding project will make easier for SMEs to raise funds transparently.

“The idea of having such an organisation is to remove any communication hurdle among the different banks. A blockchain network can only thrive if the entire ecosystem is working in synergy through a single network,” explained Singh.

The Crypto Sight recently reported that India published a blockchain blueprint for its banking sector.