Since the time when liberalization was introduced, many changes have taken place in banking world. Although in India block chain technology is still at its initial stage, many of the banks are using this technology to make their tasks easier. However, block chain technology will offer remarkable progress in the area of banking as with the help of it; banks are able to provide quick, accurate, and quality service to their customers. With the inception of blockchain technology, the banking sector has transformed, as many of its processes have become transparent, safe, and efficient as well. Under blockchain technology, banking systems are basically based on one point data base, which has dispersed ledger for reducing cyber crimes. The present chapter tries to depict the same with the help of a descriptive analysis of increase in incentives, and also the inconvenience faced by banks in recent times after the introduction of block chain technology.
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A standard model of Industry 4.0 has witnessed a transfer from Cyber Physical Mechanisms towards more Customer Targeted Approach. This transfer has the objective of designing the systems which are directed towards hyper cognitive approach, amalgamation of implicit and comprehensive image, online machine prototype, mutual robotics, artificial intelligence (AI) etc. The novel trend of Industry 5.0 is forecasted to achieve quantum of production with customer centric approach overpowering the scope and boundary of Industry 4.0. Industry 5.0 is also projected to assist various industrial areas like healthcare, farming, banking, supply chain production, drones, robotics etc. (Verma et al., 2022). Innovation in technology is the main requirement as well as is a reason for affluence. Banking and innovation both work simultaneously as they are closely interrelated to each other. Since liberalization, banking sector has observed various novel innovations and by adopting those innovations it has played a significant role as financial intermediary in Indian Financial System. Technology innovation has a very close and unbreakable connection with banking sector as both gets benefits from each other’s association. Many countries such as Denmark, USSR etc. have been taking advantage of the same association (Rajagopalan & Sankaranarayanan, 2020). Block chain is another emerging technology that is preferred by the industrialists as a security enabler to Industry 5.0 due to its remarkable features of consistency, chronicle and balancing in various segments of the society like medicines, education, banking etc. (Verma et al., 2022)
In India, under the leadership of Dr. C. Rangarajan, a committee was set up by RBI in 1988. The main reason behind setting up of committee was to improvise the services for customers, maintaining books and records properly etc. banks started its innovative journey through the inception of PCs, followed by LAN, Anytime Anywhere banking. However, the main changes were observed after the entry of private sector banks in the industry. Banks started benefitting from the innovations in respect to time and cost by adoption of internet banking, MICR based banking, inter association between branches of banks, introduction of ATMs, however the main revolution was observed after the ingress of NEFT, RTGS, Mobile banking, debit and credit cards and most important UPI transfer. Therefore, it can be claimed that banking sector has seen a remarkable revolution in recent times and also aiming at providing error free, quality service to the customers (Gupta & Gupta, 2018).
With the inception of Blockchain technology, banking sector has transformed as many of its processes have become transparent, safe and efficient as well. The current operations of the banking sector have been improved with the automation of banking processes through implementation of block chain technology. With the introduction and execution of block chain technology, many of its tasks are being done efficiently, fraudulent activities have in the financial transactions have been reduce, there is very less intervention of regulatory bodies in the work of banks there is less requirement for that. Under blockchain technology, Banking systems are basically based on one point data base which has dispersed ledger for reducing cyber crimes. Although Blockchain is no far back in any of the benefits it has given to banking industry, still its inception has made banking sector face various challenges such as no common international standard related to its implementation, necessity of multilevel security, no national and international regulations on the jurisdiction issue (Patki & Sople, 2020). Hence, it becomes imperative to do a descriptive analysis of increase in incentives and also the inconvenience faced by banks in recent times after the introduction of block chain technology.