To prevent frauds such as the recent Rs. 11,000 crore Letters of Undertaking (LoU) scam, Primechain-GUARANTEE, a blockchain for recording LoU, Bank Guarantees, Letters of Credit and other Documentary Credits has been developed.
The LoU scam took place because fraudulent bank employees issued Letters of Undertaking:
- without following the processes,
- without securing adequate collateral and
- without recording the transactions in the bank's core banking systems.
Primechain-GUARANTEE records are stored in the blockchain in an encrypted form and can only be viewed by banks that have been "whitelisted" by the issuer bank. This ensures data privacy and confidentiality while at the same time ensuring that records are shared only between banks that trust each other.
|Sample application with source code|
|Node on shared blockchain|
|Suitable for intra-organization use (within the organization)|
|Suitable for inter-organization use (shared by multiple organizations)|