Transforming Financial Services in India: Impact of Blockchain Technology and Decentralized Finance (DeFi)

Abstract

The rapid evolution of blockchain technology and decentralized finance (DeFi) has significantly disrupted traditional financial services globally. DeFi, by leveraging blockchain, enables financial services without relying on traditional intermediaries such as banks, creating a more inclusive, efficient, and transparent financial ecosystem. The chapter explores blockchain and DeFi's impact on the Indian financial services sector. The purpose is to identify how these technologies are transforming financial products, services, and regulations in India while addressing key issues like financial inclusion, security, and scalability. The research methodology involves a qualitative approach, including an analysis of secondary data, case studies of Indian blockchain startups. The study will also provide insights into the regulatory and institutional changes required to support this transformation. In conclusion, while blockchain and DeFi offer significant promise for the Indian financial sector, their adoption requires overcoming technological, regulatory, and cultural barriers.