India advances in Blockchain and AI research with NPCI-IISc collaboration

India, known for its cautious approach towards cryptocurrencies, is now actively engaging in research and development focused on blockchain technology – the backbone of cryptocurrencies. In a recent move, the National Payments Corporation of India (NPCI) has teamed up with the Indian Institute of Science (IISc), Bengaluru.

The goal of this partnership is to delve into research on emerging technologies such as blockchain and Artificial Intelligence (AI). A Memorandum of Understanding (MoU) has been signed by both parties to formalize this collaboration.

The NPCI, an initiative by the Reserve Bank of India (RBI), is dedicated to driving innovations in retail payment systems through technology. Meanwhile, the IISc stands as one of India's premier institutes for advanced scientific and technological research, established in 1909. Together, they aim to develop scalable blockchain platforms and a multi-modal analytics platform to oversee fintech data.

"Recognizing the significant potential for research in deep technologies like blockchain and AI, we aim to further enhance the payment landscape as our nation moves towards digital sustainability," said Vishal Kanvaty, Chief Technology Officer, NPCI, in an official statement.

Previous attempts for blockchain development in India

Blockchains serve as digital ledgers that record transactions across multiple computers, enhancing security against tampering and hacks. The NPCI's interest in understanding blockchain technology is not new. Last year, the NPCI launched Falcon – an open-source project simplifying blockchain management and usage.

In 2020, the NPCI introduced ‘Vajra', a blockchain-based system streamlining payment clearing and settlement processes for NPCI products. Moreover, in April 2023, a dedicated impact lab focusing on blockchain technology was established at the Hyderabad campus of the Indian School of Business (ISB).

Last February, the Telangana government partnered with the Bharat Web3 Association to initiate discussions on blockchain technology. As part of their collaboration, the NPCI and the IISc will explore research and development opportunities in cryptography and machine learning (ML).

"The joint research envisaged between NPCI researchers and IISc faculty members presents a unique opportunity for translational research that can enhance the scalability and effectiveness of billion-scale platforms managed by NPCI," noted Professor Yogesh Simmhan, Associate Professor at the Department of Computational and Data Sciences, IISc.