Telangana government's B-PoST (Blockchain-Protection of StreeNidhi Transactions) has won the Indian Express Technology Sabha Award 2020. The award was received by Ramadevi, Director of Emerging Technologies on behalf of the government on Wednesday.
Technology Sabha Awards are given to Government departments that demonstrate the innovative use of technology for distinct benefits to the stakeholders.
B-PoST is a Blockchain-based solution developed by a startup-Cognitochain - to empower poor women, especially the unbanked and underbanked population, and propagates financial inclusion.
"Traditionally, Self Help Groups (SHGs) borrowers cannot access the formal financial sector for credit, as there is no credible way to establish their creditworthiness or to assess borrowers' risk profile. Using a trail of tamper-proof transactions on a decentralised blockchain-platform, a credit rating can be derived for StreeNidhi Self Help Groups (SHGs)," said an official statement.
"These ratings can also be shared with other financial institutions, which in turn improves the access of SHG members to lending from formal financial institutions, without the need to furnish collateral. This can be a lifeline for small businesses struggling to function in the COVID era," it said.
For StreeNidhi (Micro-Finance Institution), the solution increases transparency by providing auditable financial metrics, enhanced supervision and regulatory oversight.For the pilot phase, loan disbursement and repayments of StreeNidhi for all 1.5 lakh members in Rajanna District of Telangana will be recorded on a blockchain-based platform.
"Telangana is at the forefront of using frontier technologies for delivering services to the citizens. This project is unique as it serves the poorest of the poor and has the potential to replicate across the country," Jayesh Ranjan, Principal Secretary for IT and Industries of Telangana government.
( With inputs from ANI )
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