- Citi India successfully completes its first blockchain-enabled Letter of Credit (LC) transaction on the Contour platform for Cummins India Limited.
- The decentralized global trade finance network reduces LC processing time by up to 90%, streamlining trade processes and enhancing client experience.
- Citi India Pioneers Blockchain-Enabled Letter of Credit Transaction: Advancing Trade Digitization and Efficiency via Contour Platform
Introduction:
Citi India has accomplished its first blockchain-enabled Letter of Credit (LC) transaction on the Contour platform for its client, Cummins India Limited (Cummins), a diversified industrials manufacturing company. This milestone highlights Citi’s ongoing efforts to digitize trade and enhance the client experience.
Contour – A Global Digital Trade Finance Network Contour, a global digital trade finance network powered by blockchain technology, facilitates seamless and secure real-time collaboration among multiple parties, including banks, corporates, and logistic partners. Citi is a founding member bank of Contour.
Impressive Reduction in LC Processing Time Contour’s decentralized global trade finance network has demonstrated that LC processing time can be reduced by as much as 90%. Cummins’ document presentation, which typically takes 5-10 days, was completed in just three hours. This achievement marks the first domestic end-to-end blockchain-enabled LC transaction on Contour in India.
Citi India’s Commitment to Digitization Mridula Iyer, Head of Treasury and Trade Solutions at Citi South Asia, emphasized the importance of simplifying trade processes, reducing transaction time, and providing clients with access to trade financing and working capital solutions through digital platforms. Contour eliminates the need for paper-heavy documentation, acting as a crucial enabler of trade digitization.
The ‘One Citi’ Proposition Citi’s Treasury and Trade Solutions (TTS) business in India served as both the LC Advising and Issuing Bank for the transaction. The ‘One Citi’ proposition showcases Citi’s market-leading digital solutions, providing a safer, faster, and paperless solution for the LC transaction between Cummins and its customer.
Conclusion:
Citi India’s successful completion of its first blockchain-enabled Letter of Credit transaction for Cummins India Limited on the Contour platform demonstrates the potential of digitized trade processes. The Contour platform offers a more efficient, secure, and paperless solution, promoting collaboration among multiple parties and significantly reducing LC processing time. The adoption of such innovative technologies can lead to a more streamlined and efficient trade finance landscape.
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