New initiatives of NPCI and IISC
In a notable development, the National Payments Corporation of India (NPCI) has partnered with the esteemed Indian Institute of Science (IISc), Bengaluru. This collaboration aims to spearhead research initiatives encompassing cutting-edge technologies like blockchain and Artificial Intelligence (AI). A Memorandum of Understanding (MoU) has been formalized to cement this joint endeavor.
The initiative is under the supervision of the RBI
The NPCI, an initiative under the aegis of the Reserve Bank of India (RBI), is dedicated to driving innovations in retail payment systems through technological means. On the other hand, the IISc is India’s foremost institution for pioneering scientific and technological research, with a rich legacy dating back to 1909. Together, these entities will focus on crafting scalable blockchain platforms. Additionally, they will create a multi-modal analytics platform tailored to oversee fintech data, marking a significant stride in this collaborative effort.
“As our nation strides towards digital sustainability, we recognize the immense potential for research in transformative technologies such as blockchain and AI to elevate the payment landscape to newer heights,” stated Vishal Kanvaty, Chief Technology Officer of NPCI, in an official declaration.”
NPCI’s Falcon, an open-source initiative to streamline blockchain Management
“Blockchains serve as digital ledgers that distribute transaction records across numerous computers, diverging from the centralized data storage system on a single network or server. This decentralized approach enhances security but also fortifies protocols against tampering and cyberattacks. The NPCI has been fervently delving into the intricacies of blockchain technology. In a significant stride last year, NPCI unveiled Falcon—an open-source initiative geared towards streamlining blockchain management and utilization.
Vajra – a blockchain-powered payment clearing and settlement system
In 2020, NPCI introduced ‘Vajra,’ a blockchain-powered system designed to automate payment clearing and settlement procedures for NPCI products. Furthering its commitment, NPCI established an impact lab at the Hyderabad campus of the Indian School of Business (ISB) in April 2023, dedicated to advancing blockchain technology.
In February last year, the Telangana government partnered with the Bharat Web3 Association to initiate discussions on blockchain technology. As a result of this collaboration, the NPCI and the IISc will engage in research and development activities related to cryptography and machine learning (ML).
Conclusion
“The collaboration between researchers from NPCI and faculty members of IISc provides a unique opportunity for translational research. This research can potentially enhance the scalability and effectiveness of NPCI’s billion-scale platforms,” commented Professor Yogesh Simmhan. He is an Associate Professor in the Department of Computational and Data Sciences at IISc.” India’s tech profess will be augmented with this kind of research and the government should support policies that will enable it.