Hassle - Free and Secure e-KYC System Using Distributed Ledger Technology


Bharti Pralhad Rankhambe
Harmeet Khanuja


The blockchain technology is a prominent, reliable and secure technology which is getting into almost every industry. The fundamental essence of blockchain technology offers features like transparency, decentralization, immutability, resilience, disintermediation, collaboration, security and trust. In this paper, we have focused on how the present banking industry, especially the KYC document verification process, can be impacted after using blockchain to store and track the records. The current day banking KYC processes are highly reliable on paper which is an outworn process. It is utmost essential today to have an upgraded KYC system, embedded with a reliable and trustable technology like blockchain, that could withstand frauds, and resolve the scalability and security issues. In the proposed system, the use of blockchain in KYC process restricts the presence of middlemen. This results in a reduction of fraudulent activities and errors that may occur when there are a lot of manual activities involved. Furthermore, the document verification process is only conducted only one time, no matter what is the number of financial institutions with which the customer is working with. This system provides more efficiency, reduction in costs, enhanced customer rendezvous and end-to-end transparency during the process of integrating the customer documents into the bank database.


How to Cite
Bharti Pralhad Rankhambe, & Harmeet Khanuja. (2021). Hassle - Free and Secure e-KYC System Using Distributed Ledger Technology. International Journal of Next-Generation Computing, 12(2), 74–90. https://doi.org/10.47164/ijngc.v12i2.209


  1. José Parra Moyano, Omri Ross, “KYC Optimization Using Distributed Ledger Technology”, 2017, SSRN Electronic Journal, 15 November 2017, DOI:10.2139/ssrn.2897788
  2. Chainworks Digital LLP, “Know Your Customer - Decentralized Secure Sharing Protocol on Quorum”, 2019, Third Workshop on Blockchain Technologies and its Applications, Information Security Research and Development Centre (ISRDC) Department of Computer Science and Engineering IIT BOMBAY, February 04 – 07, 2019
  3. Alex Biryukov, Dmitry Khovratovich, Sergei Tikhomirov, “Privacy-preserving KYC on Ethereum”, 2018, W. Prinz and P. Hoschka (Eds.), Proceedings of the 1st ERCIM Blockchain Workshop 2018, Reports of the European Society for Socially Embedded Technologies (ISSN 2510-2591), DOI: 10.18420/blockchain2018 09
  4. Vimalkumar Pachaiyappan, R. Kasturi, “Block Chain Technology (DLT Technique) for KYC in FinTech Domain: A Survey”, 2018, International Journal of Pure and Applied Mathematics, Volume 119 No. 10 2108, 259-265 ISSN: 1311-8080 (printed version); ISSN: 1314-3395
  5. Kevin Rutter, “If at First you Don’t Succeed, Try a Decentralized KYC Platform: Will
  6. Blockchain Technology Give Corporate KYC a Second Chance?”, 2018, R3 Corda White Paper, July 2018
  7. Prince Sinha, Ayush Kaul, ”Decentralized KYC System”, 2017, International Research Journal of Engineering and Technology (IRJET), e-ISSN: 2395-0056, p-ISSN: 2395-0072 International Journal of Next-Generation Computing, Vol. 6, No. 3, November 2015.16
  8. Reserve Bank of India, “Applications of Blockchain Technology to Banking and Financial Sector in India”, 2017, Institute for Development and Research in Banking Technology (IDRBT)
  9. Tejal Shah, Shailak Jani, “Applications of Blockchain Technology in Banking and Finance”, 2018,86651. https://doi.org/ 10.13140/ RG.2.2.32 37.96489
  10. Ye Guo, Chen Liang, “Blockchain application and outlook in the banking industry”, 2016, Financial Innovation (2016) 2:24, DOI 10.1186/s40854-016-0034-9
  11. Sovrin Foundation, “Sovrin TM : A Protocol and Token for Self-Sovereign Identity and De-centralized Trust”, 2018, A White Paper from the Sovrin Foundation Version 1.0 January 2018
  12. Sudarshan Sen, Nanda Dave, R. Ravikumar, A. Joseph, Sarat Kumar Malik, R. K. Sharma, Rakesh Sharma, A. P. Hota, A. S. Ramasastri, Mrutyunjay Mahapatra, Nitin Chugh, Amish Mehta, Prashant K. Seth, “RBI Report on Finance Systems in India”, 2017, November 2017, Reserve Bank of India, Central Office, Mumbai
  13. Aamna Tariq, Hina Binte Haq, Syed Taha Ali, “Cerberus: A Blockchain-Based Accreditation and Degree Verification System”, 2019, December 2019, arXiv.org-cs-arXiv:1912.06812
  14. Bharti Pralhad Rankhambe, Dr Mrs Harmeet Kaur Khanuja, “A Comparative Analysis of Blockchain Platforms – Bitcoin and Ethereum”, 2019, IEEE’s ICCUBEA - 5th International Conference On Computing, Communication, Control And Automation 19th - 21st September 2019, DOI : 10.1109/ICCUBEA47591.2019.9129332
  15. Satoshi Nakamoto, “Bitcoin: A Peer-to-Peer Electronic, Cash System”, 2008
  16. Web References
  17. https://metamask.io
  18. https://economictimes.indiatimes.com/news/economy/policy/rbi-6 imposes-rs-50-lakh-fine-on-pnb-for-delay-in-reporting-fraud-in- kingfisher-airlines-account/articleshow/70511380.cms?from=mdr
  19. Book References
  20. Andreas Antonopoulos, ”Mastering Ethereum: Building Smart Contracts and DApps”, November 2018
  21. Melanie Swan, ”Blockchain: Blueprint for a New Economy”, 2015
  22. Douglas Stebila, Kenneth G. Paterson, ”Selected Areas in Cryptography”, 2019
  23. Nitin Gaur, Luc Desrosiers, Venkatraman Ramakrishna, Petr Novotny ”Hands-On Blockchain with Hyperledger: Building decentralized applications with Hyperledger”, 2018