SWIFT India establishes a partnership with MoetaGo a fintech firm to initiate a distributed ledger (DLT) network structured to enhance the efficiency and security of financial products, as per the press release published on November 20.
A joint venture of SWIFT SCRL (Society for Worldwide Interbank Financial Telecommunication) and multiple other major Indian and international banks, including Bank of India, HDFC Bank and others, SWIFT India specializes in providing messaging services for domestic market infrastructure, corporates and banks.
The announcement mentions, the new programme built on financial services network technology of MonetaGo will be integrated through standardization of SWIFT financial messages.
The banks are to deploy a common DL network, that matches the industry-level governance, data privacy and security requirements in order to upgrade the efficiency and security of their procedures and financial products.
Kiran Shetty, the CEO of SWIFT India, says that the company will digitize the process of trade, while MonetaGo will provide “fraud mitigation solutions to avoid double-financing and check the authenticity of e-way Bill.” An e-way bill is a digitally generated bill for the specific movements of goods which has value more than 50,000 rupees.
Asserting here, Jesse Chenard, the CEO of MonetaGo, said, “Given India’s focus on a digital infrastructure which is supported by both policy and technological innovation, it makes sense that large institutional players are interested in these products and initiatives.”
Last September the Union Cabinet of India gree lighted a Memorandum of Understanding (MoU) on DLT’s collaborative research, with the plan to improve the understanding of DLRT and define areas where technology can be used to develop the operational efficiency. Reportedly the research is jointly carried out in collaboration with multiple leading banks “in the interests of the development of the digital economy.”
In March this year, SWIFT published a report stating plans on DLT Proof-of-Concept (PoC) to help reconciliation of Nostro account. The report showed that DLT can provide the essential functions of Nostro account reconciliation while Damien Vanderveken, SWIFT’s Head of Research and Development mentioned, “The PoC went extremely well, proving the fantastic progress that has been made with DLT and the Hyperledger fabric in particular.”