Just the day before Indian Independence Day, the Reserve Bank of India (RBI) officially gave approval to a blockchain-based MSME financing solution from its fifth “Theme Neutral” Regulatory Sandbox.
The platform is developed by Indian Banks’ Digital Infrastructure Company (IBDIC) in partnership with ICICI Bank, HDFC Bank, Yes Bank, and Aditya Birla Capital. It helps small and medium enterprises (MSMEs) in supply chains access affordable credit—as noted by Crypto India on X.
As per the official release, the program turns invoices from Tier-1 suppliers, approved by large and reliable companies (anchors), into digital tokens. These tokens are then transferred digitally, allowing lenders to provide quick funding against them. The goal is to make financing faster, more transparent, and more affordable for lower-tier MSMEs.
The RBI confirmed that the product can now be adopted by banks and other regulated players, provided they meet all compliance requirements. “The entity has now exited the Fifth Cohort of the RS. The product may be considered for adoption by Regulated Entities, subject to compliance with applicable regulatory requirements,” the release stated.
It also reminded that applications for its “Theme Neutral” sandbox are now open on an ongoing basis through the PRAVAAH portal.
Blockchain Moves in India
On August 8, 2025, Coinbase’s Chief Legal Officer, Paul Grewal, met Karnataka’s IT Minister Priyank Kharge in Bengaluru to discuss possible partnerships in blockchain, cybersecurity, and developer training.
At the same time, the Indian government has said that its flagship Digital India Land Records Modernization Programme (DILRMP) does not yet utilize blockchain technology. This came after Warangal Congress MP Kadiyam Kavya asked whether blockchain could be used to digitize land records in Warangal to improve subsidy distribution and prevent fraud.
Debut of the BPI India
India got its first dedicated Bitcoin think tank, the Bitcoin Policy Institute of India (BPI India). Its mission is to promote Bitcoin as a tool for securing the country’s economic future, linking financial independence with the spirit of political freedom celebrated on Independence Day.
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