India's YES Bank using blockchain for automated client payments
YES Bank has introduced blockchain-based technology to enable electrical goods manufacturer Bajaj Electricals to digitise its payments to vendors. The bank's blockchain will use a smart contract developed by fintech start-up Cateina Technologies to verify and process fund distribution and discounting to Bajaj Electricals' vendors and automate debit from the manufacturer's account. Payments are now processed in real-time, whereas they previously took four days, the bank said. Additionally, YES Bank expects to develop letter of credit and documentary collections, foreign remittances and trade finance partnerships with blockchain.

YES Bank will be now using blockchain technology to help consumer electrical goods manufacturer Bajaj Electricals to digitize payments to its vendors. YES Bank will be using a smart contract developed by fintech start up Cateina Technologies on the blockchain which will allow Bajaj Electricals to process disbursement of of funds and discounting to its vendors. The solution will also facilitate an automated debit from Bajaj Electricals’ account by YES Bank. A blockchain , the underlying technology in bitcoins and other cryptocurrencies, is a shared digital ledger which is continuously updated with all transactions. This ledger keeps a record of each transaction that occurs across a fully distributed or peer-to-peer network, either public or private. One of the biggest uses of the blockchain are the development of smart contracts, a set protocols that facilitate, verify, or enforce the negotiation of a contract. Smart contracts usually have a user interface which can emulate the logic of a contractual clause. The bank says that it has now digitzed the entire process cycle for bill discounting and has reduced the time for processing these payments to almost real time from the earlier four days. The blockchain will also capture the transaction status along with details and will be transmitted to Bajaj Electricals’ Enterprise Resource Planning software. YES Bank added that it has put in place a detailed roadmap on commercialising blockchain-based banking solutions in India and is exploring use cases for implementation towards ‘Letter of Credit’ and Documentary Collections, Foreign Remittances and Partnering with Correspondent Banks for Trade…

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