How is blockchain used in banking?

Blockchain is being used in banking to enhance transparency, reduce fraud, and speed up transactions. It offers a decentralized and tamper-proof ledger, which means every transaction is recorded and verifiable by all parties. In banking, this helps in real-time settlement of cross-border payments, reducing delays and costs. Banks also use blockchain for smart contracts, trade finance, and KYC (Know Your Customer) verification, improving efficiency and reducing paperwork. In India, major banks and fintech companies are exploring blockchain through sandbox programs supported by the RBI. The technology is also being tested for secure loan disbursement and asset tokenization. While full-scale adoption is still growing, blockchain is expected to significantly modernize core banking processes, especially in clearing, settlements, and identity verification, making the system faster and more secure.