Exim Bank of India has signed a multilateral cooperation agreement with member development banks of BRICS to undertake “collaborative research” in distributed ledger/blockchain technology.

The MoU — signed by Exim Bank Managing Director David Rasquinha — was an outcome of the discussions the member development banks had during their annual meeting, with the objective of strengthening the cooperation under the BRICS Interbank Cooperation Mechanism.

The BRICS grouping comprises Brazil, Russia, India, China and South Africa. Under this umbrella agreement, the signatories have agreed to constitute a joint research working group which will formulate the research agenda and targeted outcome.

The working group will also carry out research towards identifying potential applications of the distributed ledger/blockchain technology, in the financial sector, particularly in the area of infrastructure financing. The distributed ledger/blockchain technology replaces the old processes and paperwork with a new-found innovative process that is faster, and can offer tangible outcome.

The agreement, thus, is expected to contribute to enhanced cooperation among BRICS development banks, and would also speed up and simplify the processes, and thereby reduce the cost of cross-border payments using the blockchain technology.

Exim Bank of India is the nominated member development bank under the BRICS Interbank Cooperation Mechanism.

Other nominated member development banks from BRICS nations are: Banco Nacional de Desenvolvimento Economico e Social – BNDES, Brazil; State Corporation Bank for Development and Foreign Economic Affairs – Vnesheconombank, Russia; China Development Bank Corporation, and Development Bank of Southern Africa.