Following ICICI bank’s successful execution of first two transactions using blockchain technology, two other leading Indian banks – Axis Bank Ltd and Kotak Mahindra Bank Ltd – have jumped on the blockchain bandwagon.

According to Livemint, Axis Bank and Kotak Mahindra Bank are conducting pilot transactions. They are exploring the potential of the technology in various business segments to determine whether there exists a business model for blockchain in India.

“We are theoretically convinced that blockchain is the way ahead. But we have to establish a practical use of the technology. As of now, the focus is on whether the technology is scalable in the near future,” said Deepak Sharma, chief digital officer, Kotak Mahindra Bank, as quoted by Livemint.

Sharma added that Kotak Mahindra Bank is currently conducting pilot transactions in cross-border remittances and trade settlements, using blockchain technology. He also said that the bank is working with some international banks and a technology provider for these pilots, without disclosing the names.

Axis Bank said that it would successfully conduct full-fledged transactions, before launching a product in the market. Amit Sethi, chief information officer, said that the bank is assessing cases in businesses relating to foreign exchange and some other corporate banking operations.

“While we believe there might be some use of blockchain technology in the retail businesses, we think that it will first come out in the corporate banking operations. Cost and the speed of transactions will be key differentiators, but the efficiency and ease of conducting transactions will also matter,” Sethi said. “We will come out with solutions for our customers soon, but we don’t want to commit to any time frame”.

Last week, ICICI Bank, India’s largest private sector bank by consolidated assets, announced that it executed a pilot transaction to showcase confirmation of import of shredded steel melting scrap by a Mumbai-based export-import firm from a Dubai-based supplier. The second initiative involved a transaction on the blockchain application that enabled an ICICI Bank branch in Mumbai to remit funds to an Emirates NBD branch in Dubai in real time.

The Reserve Bank of India (RBI), while maintains a cautious stance on digital currencies, seems to be interested in the underlying blockchain technology. Earlier in June, reports suggested that the central bank could set up a committee in order to study the use of blockchain technology to curtail the use of paper currency.