THE ROLE OF BLOCK-CHAIN TECHNOLOGY IN ENHANCING CYBER-SECURITY IN INDIAN BANKS

Abstract

The growing reliance on digital technologies in the Indian banking sector has introduced significant cyber-security challenges, including data breaches, financial fraud and unauthorized access. These challenges threaten customer trust, operational efficiency and compliance with regulatory standards. Block-chain technology, characterized by its decentralized architecture, cryptographic security and immutable ledger, presents a transformative solution for enhancing cyber-security. This paper examines the role of Block-chain technology in mitigating cyber-security threats in Indian banks.

The study begins by identifying prevalent cyber-security risks and evaluating the limitations of current protective measures. It explores how block-chain’s features, such as encryption, consensus mechanisms and smart contracts, can address these vulnerabilities. Key applications include secure transaction processing, decentralized identity management and real-time fraud prevention. Additionally, the paper highlights global best practices and examines Block-chain’s potential to improve transparency, trust and compliance in the Indian context.

Despite its promise, Block-chain adoption in Indian banks faces challenges, including high implementation costs, resistance to change and the lack of technical expertise. Regulatory frameworks and interoperability concerns further complicate deployment. To overcome these barriers, this study proposes strategic recommendations, including government incentives, investment in infrastructure and public-private collaboration. The paper also suggests policy reforms to align with the Reserve Bank of India’s (RBI) vision for digital innovation and security.

By analyzing Block-chain’s potential through case studies and stakeholder perspectives, this paper contributes to the growing discourse on integrating advanced technologies into the Indian banking system. It concludes that block-chain, when effectively implemented, has the potential to revolutionize cyber-security practices, safeguarding the sector against emerging threats while fostering a secure and resilient digital economy.