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, SHG 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). 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.
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 the Rajanna Sircilla 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” – Mr. Jayesh Ranjan, Principal Secretary, ITE&C Department, Government of Telangana.