Yes Bank ties-up with Bajaj Electricals for vendor financing using block chain

Posted on:05 Jan 2017 09:34:39
Yes Bank ties-up with Bajaj Electricals for vendor financing using block chain
05 January 2017 Current Affairs: Mid-sized private lender Yes Bank has entered into a tie-up with Bajaj Electricals for vendor financing using blockchain solution, and announced to use the technology more aggressively as it saves over 70 per cent in cost. 

As part of the tie-up, the bank has completely digitalised its processes when it comes to transactions with Bajaj Electricals and its vendors in such a way that blockchain solutions can be implemented.

This will help in clearing short-term working capital loans to Bajaj's vendors almost instantaneously as against the present manual practices which take upwards of four days. 

Blckchain solutions is a distributed database that maintains a continuously-growing list of ordered records called blocks. The spokesperson said it reduces turnaround times, is transparent and also ensures zero errors. 

The bank will now look at deploying the same supply- chain financing solutions with more clients and is also keen on leveraging the benefits of blockchain solution to other areas like international payments and trade finance. 

The bank is at a fairly advanced stage when it comes to international payments and is targeting to start processes within a month, while trade finance will take three months .

For the tie-up, the bank was helped by fintech startup Cateina Technologies which developed the "smart contract", and is using a cloud-based cognitive service from IBM. 

The bank official said there are significant advantages for Bajaj Electricals as well. 

This solution enables us to do timely processing of the vendor payments without physical documents and manual intervention. It also enables us and our vendors to track the status of the transactions real-time .

Monthly Current Affairs

Current Affairs Section

Daily Current Affairs Quiz

Subscribe to Current Affairs

Enter your email to get daily current affairs

Current Affairs December 2017

11 DECEMBER
NEWS
10 DECEMBER
NEWS
9 DECEMBER
NEWS
8 DECEMBER
NEWS

Current Affairs November 2017

30 NOVEMBER
NEWS
29 NOVEMBER
NEWS
28 NOVEMBER
NEWS
27 NOVEMBER
NEWS

Current Affairs October 2017

31 OCTOBER
NEWS
30 OCTOBER
NEWS
29 OCTOBER
NEWS
28 OCTOBER
NEWS