Tata Steel has executed a blockchain-enabled paperless export order with a metals specialist in Bangladesh.This makes it the first such transaction executed between an Indian company and a Bangladeshi counterparty with the assistance of different banks.The deal was brokered by India’s Standard Chartered Bank and took place on Contour’s blockchain trade platform, which enables banks, businesses and other trading partners around the world to transact with each other.Standard Chartered advised and confirmed that the Letter of Credit (LC ) supports the Tata Steel base order received through Contour and also enables submission of documents to the buyer’s bank through the platform.This helps resolve discrepancies early and reduces overall turnaround time from weeks to days.The solution reduces paperwork and time and improves operational efficiency as evidenced by the seamless transfer of letters of credit and electronic submission of documents between two different banks on both ends through the platform within three hours.Tata Steel’s Vice President (Flat Products) said: “Tata Steel has made a pioneering effort this year to digitally transform it to be sustainable, efficient and time-saving. We are now delighted and more confident, Because we have executed the first multi-bank blockchain-enabled transaction. This technology, along with Tata Steel’s key efforts, provides efficiency and agility to enable better customer interfaces. The Covid-19 pandemic underscores that technology will lead the way Experimenting with blockchain for better customer experience is one of the ways of doing business in the future.” This integrated solution using blockchain technology allows all parties involved in a transaction on a single platform in real-time communication.Compared to the traditional paper-intensive LC process, it aims to reduce processing time by digitizing the entire LC process and eliminating operational inefficiencies.In addition, the technology enhances the security of transactions.This information can only be shared with other authorized members of the network and is immutable, reducing the risk of data manipulation and fraud, while increasing transparency for all parties involved in a transaction.Earlier this year, Tata Steel executed its first blockchain-enabled transaction, which will be its first multi-bank transaction outside India.The company is committed to moving to digital trading, which will facilitate seamless and efficient trading practices in the future.Shares of Tata Steel Ltd were last traded at Rs.Rs 1112.25 compared to the previous close.1173.65.Out of over 61,001 trades, the total number of shares traded on the day was 945,033 shares.The stock hit an intraday high of Rs.1160.00 and an intraday low of 1107.00.Net turnover for the day is Rs.1065562019.00.
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Post time: Jan-12-2022
