A study on vulnerabilities in Indian banking sector: with reference to blockchain technology

Abstract

The vulnerabilities in today's banking system are increasing day by day, where security is the major issue. Today's banking system is totally built on centralised databases. Vulnerabilities can be reduced by rebuilding banking system with blockchain, which is a decentralised distributed ledger which will remove the centralised database architecture and decentralise the data over the blockchain. The transactions in blockchain are verified by each and every node of the chain, so that it will make the transactions faster and secure. This research paper is focused on the vulnerabilities, security and privacy issues and the impact of blockchain technology on Indian banking sector. The data was collected from both primary and secondary sources. Likert scale was employed for designing the questionnaire. Samples of 250 employees from public sector banks were collected. Various factors were identified for the analysis, which employed factor analysis, descriptive statistics, correlation, regression and hypothesis. It was found that adoption of blockchain technology reduces the vulnerabilities in the Indian banking sector.