Current Affairs - Banking - Discussion

The Private sector lender Kotak Mahindra Bank has enabled end to end trade financing for one of its clients by utilising the blockchain technology thereby reducing the time taken for a letter of credit (LC) to few hours from 20 to 30 days. The time involved in completing the process deprives exporters from from utilising their sale proceeds efficiently. In a first of its kind transaction in India, Kotak partnered with Deloitte and used the blockchain technology to complete LC transactions.