Shriram Transport Finance to issue fixed deposit certificates using Blockchain
First NBFC in India to issue deposit certificate using Blockchain
Shriram Transport Finance Company Limited (STFC) is India’s largest asset financing company. As a part of STFC’s ongoing digital first approach, the company has launched India’s first Blockchain assured Digital FD Certificates to provide cryptographic security and authenticity on its private Blockchain with seamless customer service.
As part of the digital certificate issuance process, customers will be able to access the digital certificate instantly with the help of a trust infrastructure created by STFC where they can download, share or verify the authenticity of the digital certificates at ease. Blockchain will create a Global Trust of these FD certificates and making it immutable data on the infrastructure for any future audit.
The company, about four years back issued FD certificates in a physical format. Subsequently, the senior citizens seamlessly accepted the certificates to be issued in an electronic format. Now, STFC is moving the process over a Blockchain. “It makes the process easy to trace, document trails are readily available and the documents remain immutable and cannot be edited without due consensus,” says Umesh Revankar, Vice Chairman and Managing Director of Shriram Transport Finance Company. It’s important to note that the financial industry has been sporadically facing frauds relating to fake fixed deposit receipts.
STFC had to wait to go Live with Blockchain. The necessary regulatory approvals were taken from RBI and then the NBFC became the first company to use the technology for storing and processing FD receipts. “The regulator wants to be extremely sure about instruments that are not issued physically. Usually they would prefer physical documents. Security is an important parameter,” says Revankar.
The software layer has been designed by STFC’s inhouse company, Novac Technology Solutions. It is also the digital solution partner offering the accounting system too. The Blockchain technology and storage is provided by a start-up, Print2Block. The Chennai based company has devised the technology for issuing deposit certificates on their Docchain.io Platform. STFC has plans to on board other start-ups to leverage the optimal use of blockchain technology. The company plans to bring other paper based processes on Blockchain.
STFC has an overall FD book of over 17000 Cr and the company mobilises about 700-800 Cr of FDs on a monthly basis.