Blockchain

The banker-customer relationship is not only a contractual kith and kin but a relation of trust and confidence, where the customer senses that his money is safe in the hands of the banker. Yet, India has witnessed numerous dishonest occurrences in the sector of banking and finance, gravely affecting the fiscal health of banks, setbacks to the nation’s economy, and a direct bout to the faith of customers. This disagreeable situation arises due to copious reasons, like financial cheats, audit failures, managerial dishonesty, mischief of bank employees, misuse of political powers, hopeless legal provisions, monetary transgressions, and above, failure of the governance system. Overflowing legislation and regulatory provisions have been introduced to control these deviations and to take punitive actions against the fraudsters; deplorably, lawbreakers have always been one step ahead of the policymakers, which proves that the existing legal framework is inadequate to curb the issue, and the law alone cannot succeed without interdisciplinary help. The inception of the blockchain system, which proposes the idea of a decentralized system ledger, may be an alternative to the traditional system of security, providing a more robust, effective, and transparent system to check and eliminate banking fraud in India.