Reliance Industries used blockchain to conduct export with an American client, making it a first such transaction for an Indian company, Financial Express has reported. British multinational banking and financial services company-HSBC executed the financial transaction.
RIL joint chief financial officer Srikanth Venkatachari in a statement said that using blockchain allows for a significant reduction in time required to exchange export documents. He claimed that the same transaction which used to take seven to ten days can be completed within one day.
In the current system, there is a use of paper-based LC’s to support the transactions. Post, courier or faxes deliver the physical documents sent by each party during operations. The prevailing system provides a high level of certainty but the time and cost involved in processing the documents are restraints for exporters.
The blockchain platform has been integrated with the electronic bill of lading (eBL) platform. This allows digital transfer of the title of goods from the seller to the buyer.
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