Citi India has successfully completed its first blockchain-enabled Letter of Credit (LC) transaction for its client Cummins India using Contour – a global digital trade network powered by blockchain. This marks the first domestic end-to-end blockchain-enabled LC transaction completed on Contour in India. The transaction is part of Citi India’s efforts at trade digitization.
The use of blockchain technology has enabled the LC processing time to be reduced by as much as 90%. In this case, the LC document presentation which usually takes 5-10 days was completed in just three hours on Contour. Contour allows multiple parties such as banks, corporates and logistic partners to collaborate seamlessly and securely in real-time on a single platform. Citi is one of the founding member banks of Contour.
Mridula Iyer, Head of Treasury and Trade Solutions, Citi South Asia, said, “A top priority for our trade business globally, and in India, is to simplify trade processes and reduce transaction time, as well as provide clients access to trade financing and working capital solutions, through digital platforms. Platforms such as Contour bring together multiple partners involved in a trade transaction while eliminating the need for paper-heavy documentation and is a critical enabler of trade digitization. We are extremely pleased to be able to partner with Cummins and Contour in executing this transaction”.
