Blockchain Technology: Reinventing the Security and Efficiency posture of the Indian Banking System

Abstract

Since its inception in 2008, Blockchain technology has been touted as a disruptive force that has the panache for changing business models in this ever-evolving technological landscape. Blockchain is an immutable and ever-growing digital ledger that can keep a permanent record of all the past transactions that have been performed on a network in chronological order. This research paper will primarily focus on the problem of financial fraud prevalent in the Indian Banking System and how we can use Blockchain to prevent it by driving the system towards a decentralized network. The paper will also briefly touch upon problem areas in the Indian Banking System like double taxation and poor status of documentation. Research Methodology: Qualitative Research will be used to conduct the research. The paper is a conceptual study of the capabilities of Blockchain in making the Indian Banking System more robust. Practical implications: This research paper is aimed at benefiting both the users and banking institutions. It is not only confined to the aforementioned parties, rather extends its impact on a wider range of stakeholders e.g. businesses, NBFCs, shareholders of businesses, etc. Financial institutions can further study their security posture, helping them to fine-tune their transaction mechanism. Originality: The Indian Banking System has long been driven by the centralized network approach which has certain problems associated with it like a single point of failure. The paper will outline the impact of Distributed Ledger Technology (DLT) on various financial institutions and applications.