India’s Banking Research Institute (IDRBT) of RBI Proposes New Blockchain Banking Guidelines
The Institute of Development and Research in Banking Technology (IDRBT) has released a blueprint for blockchain implementation on the banking sector and more.
In its current form, the blueprint is a broad roadmap on enactment of the innovative technology in numerous industry and organizational roles along with standard obligations to secure interoperability among diverse entities as there are no current regulatory guidelines for the appropriation of blockchain in banks or other organizations.
As of the now, the main problem is that interoperability within distinct blockchain platforms is not quite set. To build a full-fledged ecosystem around blockchain, a common infrastructure is a must.
IDRBT is an institution exclusively focused on banking technology. Established by the Reserve Bank of India (RBI) in 1996, the institution works at the intersection of banking and technology. The main focus of the institute is on conducting applied research and experimental development in the area of banking technology. The research at the institute is directed primarily towards a specific practical objective that will serve the banking and financial sector.
R Gandhi, the former Deputy Governor of RBI talks about the financial sector being prone to cybersecurity risks.
“Increased use of rapidly evolving, sophisticated, and complex technologies… increased use of mobile technologies by customers, including the rapid growth of the Internet of Things (IoT) and the heightened cross-border information security threats.”
He added that data security and data privacy are not only terms talked amongst industry experts but also the common people. Data privacy can be recognized in two broad circumstances, in a commercial context and other is individual human rights. Organizations are getting more aware of these rights and are implementing measures to ensure the protection of data.
One of the biggest problems in India has been the protection of the customer's biometric data. He suggests a solution of splitting the biometric data into two parts.
“One the public part to be with the government, and the other, the private part remaining with the individual – the biometric data with the government will be incomplete until the private part is supplied by the individual.”
Even though the Indian government has beeing tightening its noose around cryptocurrencies, they have been pretty supportive of the blockchain technology.
Especially the state of Telangana, where IDRBT is headquartered at, has been at the forefront of this adoption cycle.