In April 2021, Tata Steel Ltd and HSBC, a banking and financial services organisation, executed the global first blockchain-enabled paperless transaction in steel industry. Under the transaction, Tata Steel exported steel to Universal Tube & Plastic Industries, UAE.
- Contour and essDOCS are the blockchain platforms used under the transaction.
- HSBC UAE has issued the Letter of Credit (LC) to Universal Tube & Plastic Industries (Importer) with HSBC India, as the advising and negotiating bank for Tata Steel(Exporter)
- Reduced Cost and time: Digitisation of the transaction reduced the costs associated with paper-based documentation and the time also reduced from weeks to few days.
Benefits:
Tata Steel said this technology in trade finance enables comprehensive visibility for all involved parties and enhances security in payment.
Reduced transaction time will help boost the efficiency of trade in the India-UAE corridor.
It also shortens the transaction time of Letter-of-Credit (LC) transactions.
Facts:
UAE is India’s third largest trade partner .
Recent Related News:
ITI Limited and Thalamus Irwine have developed a first of its kind technology called Garuda Blockchain Platform for storing medical data on the blockchain. On March 25, 2021, they have demonstrated a working proof of concept (PoC) for the technology with 300 patients.
About Tata Steel Ltd:
Headquarters – Jamshedpur, Jharkhand
CEO & MD – Mr T V Narendran
About HSBC:
Establishment – 1865
Group Chairman – Mark E Tucker
Headquarters – London, United Kingdom
