Infosys' EdgeVerve Systems which is a product subsidiary of Infosys that offers the Infosys Finacle universal banking solution suite said on Thursday that it is in initial talks with banks to adopt the blockchain technology.

EdgeVerve announced that it is taking its initial steps in banking sector to adopt blockchain technology. Associate VP and head of Finacle product strategy in EdgeVerve, Rajashekara V Maiya, talking about this initiative said that, “We are in initial stage of talks with global banking majors and it would prove fruitful.”

The key aim for adopting blockchain is that, this distributed ledger will help cut costs for banks. Talking about blockchain transactions and its process, the company said that, Blockchain forms digitial signatures and with each new transaction, there is a new digital signature that gets superimposed — so that a tree of transactions is formed. Comparing with traditional means of transfer, where there is centralized clearance, blockchain transactions are executed based on the trust between participating members.

Maiya told in his statement that, “It will greatly help cut costs for banks if they can do away with the transaction fees and associated costs with normal remittances, ATM transactions, cheque clearance, etc.”  He further added saying, “Blockchain is a shared, secured public ledger, which works on trust. Transactions go through only if more than 50% participants reach a consensus.”

Although in India, bitcoin does not have any regulatory framework, countries like U.S. accepts bitcoins. While few countries like Russia has banned the use of bitcoins. The Reserve Bank of India has also changed its stance on bitcoins and recently the regulatory body has expressed more interest in the possibilities of bitcoin.

Adding to his statement, Maiya said that, “In India, there is no law prohibiting the buy and sale of bitcoins. If I wanted to sell the bitcoins, I'd have to use one of the exchanges in the US.” Talking about RBI’s recent regulations towards the technology, he said, “This could pave the way for Indian banks to adopt this technology.”

On April 27, 2016, the company said in a press release that during Infosys Confluence global client summit in San Francisco, the company introduced its EdgeVerve Blockchain Framework designed to further the adoption of blockchain technology by the global financial services sector.

EdgeVerve Systems, a wholly-owned subsidiary of Infosys, develops innovative software products and offers them on premise or as cloud-hosted business platforms. Their products include, AssistEdge, TradeEdge, ProcureEdge, CreditFinanceEdge and Finacle.