Can Blockchain save Indian banks ?

I have been tracking the Blockchain based cryptocurrency technology innovations for the past couple of years with great interest because of the depth of business and technology innovation that it personifies today.

Last week, I got a frantic telephone call from an an ex-employee. His voice was desperate. “Sir, I have lost everything. Do you know anything about the PMC Bank ? All my life’s savings are in there. Can you please find out anything ?”

After messaging a friend at India’s central bank — Reserve Bank of India (RBI), I got confirmation of a major problem at the 36 year old bank PMC (Punjab & Maharashtra Co-operative Bank Ltd). RBI’s press release pointed to “ major financial irregularities, failure of internal control and systems of the bank and wrong/under reporting of its exposures under various Off-site Surveillance reports to RBI that came to the Reserve Bank’s notice recently.”

A newspaper carries an incredible admission by the ex-Managing Director of PMC that they had hidden the extent of their Non-Performing Assets (NPA) by a large borrower to the RBI for the past many years. By the ex-RBI governor’s own statement to Parliament, it has become impossible for them to monitor over one hundred thousand bank branches all over India.

It is obvious that no country can survive such massive ongoing banking frauds or losses. It will lead to economic and social chaos and societal breakdown. Hence, it is imperative that the RBI uses advanced proven technologies to prevent such mishaps…