Indian conglomerates are exploring the blockchain for B2B payments.

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Despite many sometimes unclear rules and restrictions, large enterprises and banks in India still use cryptocurrency - or at least some of the underlying technologies - as a more reliable way of reconciling accounts, making payments, maintaining proper accounting and managing internal funds. According to the India Times, a number of Indian corporations are currently testing blockchain technology as a means of accounting.

Despite the traditionally hostile stance of the Reserve Bank of India (RBI) on cryptocurrency exchange operations and the recent announcement that it will not launch a "digital rupee," cryptocurrencies seem to still have a future in India. In light of the revelations that the lack of proper record-keeping has contributed to the takeover of IL & FS, larger enterprises seem willing to explore alternatives that will ensure that all financial records and contracts are properly documented.

The use of blockchain technology for record keeping virtually eliminates the possibility of discrepancies, and it is this security functionality that makes it particularly useful for large corporations with a multi-level data flow. While sources are in the testing phase, sources cited by the India Times say the results look promising. According to them, if the end results are impressive, the corporations involved have plans to expand the whole process to cover wider areas.

Hindustan Unilever is one of the many large conglomerates in India studying blockchain technology for B2B payments.

It is reported that some major companies implementing such steps include Hindustan Unilever, ABG Shipyard, HDFC Bank and Reliance Industries. Several tests are currently under way in which the DLT is used solely as a record-keeping tool with the hope of balancing order registers either at the end of the quarter or at the end of the year. Despite the fact that there are no published testing deadlines and the proposed expansion, stakeholders expect that blockchain technology will have a great future in the Indian corporate space.

In an interview with the India Times, SAI Venkateshwaran, partner and head of financial Advisory at KPMG India, said:

In addition to greater efficiency and accuracy, [blockchain technology] has the potential to increase transparency for group Treasury management as well as cost savings.

Crypto refuses to leave

Significant restrictions by the Reserve Bank of India (RBI) may nevertheless be a problem for such nascent implementations, but many experts believe that these restrictions can be circumvented if corporations conduct operations strictly within the company.

In addition to the high levels of cryptocurrency fraud taking place in India, regulatory concerns are also falling into place due to alleged tax and accounting compliance issues.

Despite this, according to the report, corporate stakeholders remain convinced that getting regulators on their side in an economy that is projected to surpass the US by 2030 is only a matter of time.


Link to the source of information (Russian) - https://altstake.io/news/indiyskie-konglomeraty-issleduyut-blokcheyn-dlya-b2b-plateghey