Can Blockchain stop banks from cheating their account holders?

It could be a reason why certain banks are not promoting blockchain in the BFSI industry because they believe that corruption could be caught. A shocking incident came to light in a private bank in Mumbai, where a former senior manager allegedly stole Rs. 96 lakh from a couple's separate bank accounts.

Harun Patel, the accused, was a manager at ICICI APMC branch in Mumbai. He had allegedly forged the couple's signatures on demand drafts and cash withdrawal slips and carried out a series of transactions amounting to Rs 96 lakh between April 2017 and February 2018. Patel had transferred Rs 71 lakh and Rs 25 lakh from Yatin Bane and Sneha Bane, respectively, to his brother's account.

The ICICI bank's regional manager said that a probe is underway and Patel has been charged under IPC sections for cheating and forging signatures. Patel's misuse of the accounts was discovered a full ten months after the last transaction in the Banes' accounts when an account holder, Sonali Mithani, informed the bank in December 2018, that Patel had asked her to invest Rs 20 lakhs in a mutual fund in November 2017, but never received a receipt.

 
The bank has identified an act of irregularity at a branch. It has proactively filed an FIR with the police for investigation. It has also compensated the three customers who were impacted, ensuring no financial loss to them. The bank has also terminated the errant employee, in line with its zero-tolerance policy towards any act of indiscretion or fraud. The bank's regional manager, Ankur Desai said that they have lodged a complaint with economic offences wing with Navi Mumbai police.