Hitachi’s Payments Division is partnering with State Bank of India (not the reserve bank) to establish a digital payments platform that will work throughout the country, according to a Press Release by Hitachi on 29 October.
Under the agreement, Hitachi will provide the bank with Internet of Things (IoT) platform Lumuda as part of the government’s Digital India reform plan. Lumuda is a new base platform that was developed by the Japanese company as Proof-of-Concept (PoC) for a supply chain management task for Mizho Financial Group based in Japan last year.
State Bank of India is the largest commercial bank in India with 23% share of assets and 25% of all deposits and loan market in the country with over 420 million customers. The government, which owns a majority stake in the bank is looking to revamp the operations of the bank with technology and cut costs on its running.
Hitachi Payments seems to have the solution as it is promoting the acceleration of digitization of financial services in the country with Lumuda and other blockchain-based technological solution for digital services. Hitachi has already been providing payment services to the bank since 2011 but none of them were DLT-related until now. Hitachi is also expected to invest up to 26% in the bank’s payments subsidiary because of India’s big market potential for the financial services industry.
While India is progressing further on blockchain-based solution, cryptocurrencies and ICOs are still officially banned in the country due to the government’s attitude.
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