How Blockchain can stop PNB like frauds from happening in the banking market? - Coffee with CIS - Latest News & Articles

How Blockchain can stop PNB like frauds from happening in the banking market?

The business experts are researching Blockchain-based choices to assess financial frauds. Major Indian banks such as State Bank of India are already researching blockchain technologies for financial and banking transactions via a consortium named BankChain. The positive thing is Indian banking community is willing to research blockchain technology.

Avtar Monga, who is the ED of IDFC Bank stated, "Blockchain tech has the capability to prevent frauds and irregularities. Nonetheless, it's still early to determine what degree and how efficiently can we leverage the exact same in banking operations to prevent disputes and frauds."

Blockchain-based options have a capability to make a safe environment to prevent cyber frauds. The fiscal irregularities could be repaired through a dispersed ledger with Blockchain. The emerging technology can play an integral role in removing the human interventions, which frequently result in fraud cases. Hence a man or organization can't manipulate transactions, on their own, without alerting other people. Any transaction listed on blockchain is going to be registered across all of the stakeholders in the full series of parties involved with the transaction, thereby rendering it transparent and removing the scope for collusion for frauds. Blockchain technology can definitely prevent frauds such as PNB scam, as the parties included with the whole series of issuing LOUs could have been informed and alarmed about all of the transactions taking place.

The banking processes like money remittances, land registration, inter-bank payments, auditing, forex markets, and post-trade processing in capital markets, digital rights management, electronic identity, and others may be brought within blockchain to ensure the credibility of transactions. Tech specialists in India are very positive about utilizing blockchain to steer clear of banks frauds in the future.