Some Indian companies have already begun providing financial services through blockchain technology, a digital platform secured by cryptography, amid an ongoing debate on the usage of cryptocurrency.
Bajaj Finserv, the holding company of Bajaj Group’s NBFC and insurance firms, is using blockchain technology for services like travel insurance, for settling claims even before it is registered by the customer concerned.
“We are using blockchain technology to improve customer service,” Bajaj Finserv managing director Sanjiv Bajaj said, on the sidelines of Financial Markets Conclave organized by the Bengal Chamber of Commerce, in Kolkata, Nov. 4.
Citing an example, Bajaj said in case of flight delays, the information comes to the system and the claim amount is automatically generated and paid.
He however said, blockchain technology was closely monitored, and the company is keeping a watch on regulatory guidance regarding the usage of cryptocurrency in the country.
Electrical equipment manufacturer Bajaj Electricals Ltd. also uses blockchain technology to eliminate the manual steps involved in the bill discounting process, a company official had said earlier in the year.
Blockchain has the potential to transform multiple industries and make processes more democratic, secure, transparent and efficient, industry body Assocham had said in a recent report.
The Reserve Bank of India has repeatedly flagged concerns on virtual or cryptocurrencies like Bitcoins, stating that they pose potential financial, legal, customer protection and security-related risks.
“Any user, holder, investor or trader dealing with virtual currencies is doing it at their own risk,” the central bank had cautioned on its website in February this year.