India’s Central Bank Endorses Enterprise Blockchain Use in Supply Chain Finance

The Central Financial institution of India, the Reserve Financial institution of India (RBI), has developed a blockchain-based MSME financing answer developed by Indian Banks’ Digital Infrastructure Firm (IBDIC) PVT LTD for wider acceptance.

The approval comes after profitable completion of exams beneath the fifth cohort of RBI’s Regulatory Sandbox (RS), with a theme-neutral strategy to fintech innovation.

RBI confirmed the viability of the product in a press launch right now, 15 August 2025. It says that the answer had met upfront outlined take a look at benchmarks. It’s now eligible for adoption by entities comparable to banks and NBFCs pending compliance with the relevant rules.

Blockchain -solution for MSME -Credit entry

The IBDIC answer goals to enhance entry to inexpensive financing for MSMEs with decrease tier throughout the provide chains of firms. It makes use of blockchain and good contracts to Tokenize which can be accepted by massive firms that type the spine of those provide chains.

The tokenized invoices act as digital proof of worth addition by suppliers. They permit cash lenders to finance these MSMEs towards the tokens through a digital platform. Funds movement like tokens from consumers to sellers, in order that the working capital cycle is successfully digitized and accelerated.

It’s exceptional that Ibdic collaborated with main Indian monetary establishments, together with Icici Financial institution, HDFC Financial institution, Sure Financial institution and Aditya Birla Capital.

Just one blockchain answer knew the testing within the fifth sandbox -cohort

The fifth RS cohort began in August 2024 after he was introduced on the finish of 2023. Of the 22 purposes, solely 5 have been chosen for testing. Two of them, Ibdic and Finagg Applied sciences, supplied comparable provider financing fashions. The announcement of RBI confirms that solely Ibdic’s product has efficiently handed the sandbox, which validates the construction and the willingness of compliance.

Sandbox is “on-tap” for brand new improvements

In keeping with an earlier replace from April 2025, the RBI has now switched to an “on -tap” mannequin for its sandbox. It implies that fintechs and crypto firms can apply at any time with out ready for cohorts with theme.

The said that purposes have to be submitted through the Pravaah portal and will probably be assessed beneath the up to date framework for authorized sandbox (February 2024).

On the whole, the approval of the RBI marks an essential regulation step for blockchain within the monetary sector of India. Regulators present consolation with permitted block chains and tokenized property for using firms. The success of Ibdic might pave the best way for tokenization-as-a-service, Defi instruments for SMEs and extra blockchain pilots from Indian benches.