Revolutionising India Financial Landscape: The Impact of Decentralised Finance

Abstract

Since the inception of internet banking in India in 1998, only 370 million out of 870 million active internet users have used the web for digital banking [1]. A major chunk of India’s population remains financially excluded and is unserved and underserved. Decentralised financing is a blockchain technology that has emerged as a platform offering global access to anyone with an internet connection, removing barriers and providing financial services to underserved populations, particularly in regions with limited access to traditional banking systems. Several decentralised finance (DeFi) projects and initiatives have emerged in recent years, offering secured and prompt peer-to-peer (P2P) lending and fundraising options without the involvement of intermediaries, to address financial inclusion and streamline traditional financial procedures. Despite the remarkable significance of DeFi, it is still in its infancy in terms of adoption in India. Adequate infrastructure, technological advancements, awareness, and regulatory support are key factors driving the penetration of DeFi [2]. This paper focuses on analysing the current status of DeFi adoption in India and exploring the impact and future potential of DeFi in reshaping the Indian financial ecosystem.

Keywords: Blockchain technology, Crypto-currency, DeFi, Digital banking.

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