Their confidence in a centralized financial institution has proven to be a costly affair for millions of Indian consumers. The bank of the Punjab and Maharashtra Cooperative (PMC) has banned consumers from accessing the funds in their accounts, thus messing up their lives. Not only did he manage to do so by throwing dust in the eyes of India’s top financial regulator and central bank, the Reserve Bank of India (RBI). Is it time for consumers to start moving to encryption?
A PMC Debacle
PMC Bank tricked the RBI into giving false reports to financial regulators. The bank submitted manipulated financial information, which did not include details of some undisclosed accounts, to the central bank for sampling verification. The majority of the accounts were reported to be from Housing Development and Infrastructure Limited (HDIL) accounts, which, after an audit by the RBI, were found to be non-performing assets.
PMC Bank also sanctioned the mortgage restrictions on HDIL’s subsidiary, and interestingly, the company’s director was none other than the bank’s president, Waryam Singh. Singh even held a board meeting to approve the mortgage overdraft, which again violated central bank standards.
The case came to light and Singh was arrested, but the bank’s customers continue to go from post to post to get their money back.
How the technique was pinched
Tech has played an important role in this fraud system. Of the bank’s 1,800 employees, only 25 had special access codes to HDIL accounts. They knew what was going on with the bills, but the rest of the staff was unaware of it. The parties to the conspiracy manipulated the Management Information Systems and the NPC identification process to hide information related to HDIL accounts. The system ID script for NPAs could not recognize HDIL accounts as NPAs because they were omitted from the NPA accounts and the Overdrawn accounts list.
Thus, the information submitted to the RBI was falsified and the profits presented were inflated.
Should Blockchain and Crypto be necessary?
A PMC failure confirms the case of encryption and blockchain. Crypto – because the ownership of currencies cannot be violated. The owners of cryptocurrencies have full control over them and how they want them. Many Twitter users shared the same situations regarding cryptography.
Indian cryptographic influencer Shalini highlighted that traditional banking systems worldwide are failing, which is why they had to switch to Bitcoin.
Last week was horrible for the banks,
- ? Turkey froze 4 million bills without warning
- ? Hong Kong ATMs have run out of cash
- ? PMC Bank of India closes millions of accounts
- ? Indian police fight banks in court after RBI Ban prevented them from replacing seized Crypto
- This is
- Shalini⚡ (@DesiCryptoHodlr)
Another user pointed out that banks are greedy and bitcoin can be a savior for the average person.
For the Twitter user who has the KryptoSuperman handle, cryptography was the best way for people to keep their money in hand.
PNB / PMC… Nirav Modi… Malya… And the list goes on!
When will the people of India realize that cryptography is the best way to keep their money safe in their hands and not some kind of bank account where they cannot be verified?
– KryptoSuperman (@KryptoSuperman)
The issue also necessitates the introduction of blockchain technology in the financial system. Blockchain ensures transparent maintenance of all records and control over them is not centralized. Any manipulation of the data recorded on the blockchain will be visible to network members and may invalidate this record. Thus, the blockchain can minimize the potential for fraud and make financial systems more secure and reliable for everyone.
Do you think the blockchain is the answer to the existing problems of traditional financial systems? Share your opinion with us in the comments below!
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