Implementing Blockchain technology would be helpful in eliminating the banking frauds in India. Analyse (200 Words)
Refer- Business Standard
Enrich the answer from other sources, if the question demands.
IAS Parliament 5 years
Block Chain Technology in Curbing the frauds
· Blockchain is a completely decentralised ledger; all transactions can be viewed by the public, can’t be changed by anybody.
· A blockchain-based registry would remove duplication of effort in carrying out KYC checks. It would be useful to identify entities attempting to create fraudulent histories.
· A blockchain platform with SWIFT India will help to prevent frauds and ensure transparency and security of real-time transactions.
· Helps Banks to comprehensively analyse the databases better which will curb the wrongdoings in the banking sector.
Limitations of Blockchain technology
· Establishment of this technology needs a huge overhaul in the existing systems which is very difficult in the case of India.
· Need huge investment from government and private sectors.
· Digital Public ledgers can be hacked, this will bring distrust of citizens on banking systems.
· Bank employees need to be imparted with additional technical skills to operate the system of Blockchain. So it will take a lot of time to implement completely.
Prashant Kaushal 5 years
Kindly review. Thanks.
IAS Parliament 5 years
