India’s central financial institution, the Reserve Financial institution of India (RBI), has cleared a blockchain-based MSME financing resolution developed by Indian Banks’ Digital Infrastructure Firm (IBDIC) Pvt Ltd for broader adoption.
The approval comes after profitable completion of testing below the Fifth Cohort of RBI’s Regulatory Sandbox (RS), which featured a theme-neutral method to fintech innovation.
RBI confirmed the product’s viability in a press launch in the present day, August 15, 2025. It says the answer had met predefined testing benchmarks. It’s now eligible for adoption by entities comparable to banks and NBFCs pending compliance with relevant rules.
Blockchain Answer for MSME Credit score Entry
The IBDIC resolution seeks to enhance entry to inexpensive finance for lower-tier MSMEs inside company provide chains. It makes use of blockchain and sensible contracts to tokenize invoices accepted by giant enterprises that type the spine of those provide chains.
The tokenized invoices act as digital proof of worth addition by suppliers. They permit lenders to finance these MSMEs in opposition to the tokens through a digital platform. Funds stream as tokens from patrons to sellers, successfully digitizing and accelerating the working capital cycle.
Notably, IBDIC partnered with main Indian monetary establishments, together with ICICI Financial institution, HDFC Financial institution, Sure Financial institution, and Aditya Birla Capital.
Solely One Blockchain Answer Clears Testing in Fifth Sandbox Cohort
The Fifth RS Cohort started in August 2024 after being introduced in late 2023. Of the 22 purposes, solely 5 have been chosen for testing. Two of them, IBDIC and Finagg Applied sciences, provided related vendor financing fashions. RBI’s announcement confirms that solely IBDIC’s product efficiently handed the sandbox, which validates its construction and compliance readiness.
Sandbox Goes “On-Faucet” for New Improvements
As per an earlier replace from April 2025, the RBI has now moved to an “On-Faucet” mannequin for its sandbox. It means fintechs and crypto companies can apply anytime with out ready for themed cohorts.
It acknowledged purposes have to be submitted through the PRAVAAH portal and shall be assessed below the up to date Enabling Framework for Regulatory Sandbox (Feb 2024).
Total, the clearance from the RBI marks a serious regulatory step for blockchain in India’s monetary sector. Regulators are exhibiting consolation with permissioned blockchains and tokenized property for enterprise use. IBDIC’s success might pave the way in which for tokenization-as-a-service, DeFi instruments for SMEs, and extra blockchain pilots from Indian banks.
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