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tory requirements [19]. It also states that E-Governance in India faces challenges

in terms of scalability, diversity, and complexity in the delivery of various public

services and blockchain can address these issues and improve e-governance service.

In recent years, India has successfully laid the foundation for digital infrastructure

which eases blockchain implementation thereby having better control in contract

management and decentralization of authority in decision-making. Finance industry

is witnessing a massive surge in BCT applications aiming to improve operational

efficiency and customer experience. An Indian community called Bankchain was

established in 2017 to reduce fraudulent activities and improve information shar-

ing. This community has 37 members including public, private, and international

banks along with technology companies [20]. India is also a forerunner in experi-

menting adaptation of BCT in trade finance, cross-border payments and loyalty and

digital identity [21]. ICICI Bank along with Emirates NBD launched a BC-based

network EdgeVerve, developed by Infosys, to aid international trade finance and

remittances. The framework supports the features like distribution, extensible, and

permissioned blockchain [22]. Mahindra group of companies and IBM developed

cloud-based blockchain supporting supply chain financing to improve transactions

between supplier and manufacturer. The Proof of Concept worked better for invoice

discounting, a method that enhances invoicing process. Mahindra Finance is also

exploring the use of the shared ledger concept for small and medium-sized enter-

prises loans [21]. Bajaj Electricals in tie up with Yes bank is using smart contracts in

vendor supplier financing, thereby reducing paperwork and processing time from five

days to real-time basis. Using a permissioned or closed-loop BCT framework sys-

tem ensures that only pre-registered and authenticated users carry out transactions.

Axis and Kotak Mahindra Bank (KMB) are testing BCT transactions focussing on

cross-border remittance and trade settlements. KMB has partnered with JP Morgan

Singapore to use BC in issuing letters of credit for outbound and inbound transac-

tions. In 2018 Infosys has invited ICICI Bank, Axis Bank, Kotak Mahindra Bank, Yes

Bank, IndusInd Bank, RBL Bank, and South Indian Bank to test trade finance trans-

actions on BCT Experiments are in progress by Deloitte India in blockchain-based

customer rewards and loyalty [21]. and by National Stock Exchange (NSE) to view

values in post-trading settlements, CKYC (Central Know Your Customer) services,

trading voice exchanges, and invoices. Thus BCT implementation has advantages to

the sector in terms of enhanced security in transactions and facilitating low cost cross-

border transactions [23]. Though various processes are involved in smart contract

implementation,thischapterconcentratesonlyonKYC,TradeFinance,Cross-border

payments, Syndicate lending, Credit rating, and Reduction of bank frauds which is

mentioned as Fig.4.

4.1

Know Your Customer (KYC)

Trust being the foundation of the Banking sector, identity verification of a customer

is a prerequisite. Earlier, verification and validation of customer details were through