Blockchain is a secure record of historical transactions, collected into blocks, chained in chronological order and distributed across a number of servers. In bitcoin transactions, it can be accessed by all those who choose to pay and receive payments in bitcoins. There is no need for a central record-keeping authority.

Blockchain has the potential to transform finance. Kotak Mahindra is initiating blockchains in certain international payment corridors by tying directly with multi-national lenders. A few banks in Australia and Europe are using this technology for cross-border payments. When a large number of players will take the plunge, an eco-system of players can be created.

Blockchain can be used in KYC. NPCI had arranged an ideathon to understand how the new technology would change the future. Institute for Development and Research in Banking Technology, an RBI arm has formed a panel to look into blockchain.