IBDIC: India’s First RBI-Sandbox Exit with Blockchain Supply Chain Finance

The Indian Banks’ Digital Infrastructure Company (IBDIC) is the only fintech to successfully exit the Reserve Bank of India’s (RBI) Fifth Regulatory Sandbox Cohort, gaining approval for its blockchain-based Deep-Tier Supply Chain Financing Platform

IBDIC's platform utilizes blockchain to tokenize invoices, providing tamper-proof, real-time verification, and extending credit to second- and third-tier vendors, which addresses the significant credit gap faced by micro, small, and medium enterprises (MSMEs) in India

MSMEs play a crucial role in India's economy, contributing over 30% to the GDP and employing more than 110 million people, yet they face a credit gap estimated at ₹20–25 lakh crore

The platform's architecture was collaboratively developed and tested with major banks like HDFC Bank, ICICI Bank, YES BANK, and Aditya Birla Capital, proving its technological resilience and operational viability

As a bank-created Digital Public Infrastructure (DPI) company, IBDIC combines traditional banking trust with blockchain innovation, aiming to accelerate MSME financial inclusion and standardize supply chain financing

IBDIC’s success in the sandbox signals a broader shift in India's financial innovation landscape, with DPI becoming a foundation for scalable and inclusive solutions

The company envisions expanding its platform to include secure KYC, blockchain-based trade finance, AI/ML-powered fraud detection, and regulatory compliance, aligning with RBI and government mandates

By fostering a shared digital infrastructure, IBDIC aims to accelerate product rollouts, reduce costs, and ensure uniform service standards across the banking sector

The initiative aligns with India's broader DPI narrative, akin to platforms like Aadhaar and UPI, potentially transforming the banking sector into a faster, more transparent, and inclusive system

For successful execution, IBDIC must maintain neutral governance, keep pace with evolving technologies, and uphold global standards for data privacy and cybersecurity while scaling its adoption across various industries and institutions