The Reserve Bank of India (RBI) has informed that Blockchain Technology (BCT) is one of many promising technologies and its usefulness will depend on how it is adopted and adapted to a wide array of uses. This was stated by Union Minister of State for Finance Dr Bhagwat Kisanrao Karad in a written reply to a question in Rajya Sabha today.

Further, the Minister stated, RBI has informed that BCT has been listed as one of the innovative technologies, leveraging on which innovators can apply to test their products in RBI’s sandbox environment.

RBI has stated that their Regulatory Sandbox has not identified any specific areas as such for the use of BCT for Indian banks. However, under the Cross Border Payments theme of the Regulatory Sandbox of RBI, participating entities have tested certain blockchain based applications.

 

Blockchain Technology recognized for innovation and eligible for regulatory sandbox testing, including cross-border payments trials. Blockchain Technology is recognized among innovative technologies and is eligible for testing within a regulated Regulatory Sandbox, allowing innovators to apply for controlled trials. The sandbox has not designated specific use-cases for banks, but under its Cross Border Payments theme participating entities have tested blockchain-based applications, reflecting an experimental regulatory approach to cross-border payment innovations.