Indian bank Kotak Mahindra announced its collaboration with blockchain-enabled cross-border payment remittance system Ripple’s subsidiary RippleNet.
According to a press release which was published on Wednesday, the bank declared that it will use Ripple’s settlement solution xCurrent to reduce the average time associated with remittance payments, to minutes, instead of several days, instantly settling cross-border payments and tracking the entire transaction process from end-to-end.
Deepak Sharma, Chief Digital Officer, Kotak Mahindra Bank said, “We harness new technologies to simplify and enhance banking services for our customers. xCurrent ticks all the boxes, and enables us to offer our customers a more transparent and efficient global payments service using blockchain. Joining RippleNet also expands our payment network globally by allowing us to connect with other members.”
The bank was recently in the news when earlier this month it had sent a warning to its users ‘forbidding’ them from trading in cryptocurrencies. On the occasion, it had said, “In this regard, the bank does not encourage its customers using their accounts maintained with us for carrying out transactions involving any kind of crypto/virtual currencies and hence we request you to immediately stop transactions involving dealings in Bitcoin or any kind of crypto/virtual currency from your above mentioned account.”
Although there may be other issues as far as money transfer is concerned, payment remittance have seen an all time high in India. In 2017-18, India received inward remittances worth USD 69 billion, with the outbound remittances market increasing by 38.7% from USD 8.2 billion in 2016-17 to USD 11.3 billion in 2017-18.
Commenting on the development, Navin Gupta, Managing Director of South Asia and MENA at Ripple, said, “The payments problem is a global problem, particularly for those in emerging markets trying to send regular, low-value remittances overseas. Kotak Mahindra Bank can offer its retail customers a step-change improvement in their inward remittance experience thanks to xCurrent, and we look forward to connecting them to other RippleNet members to expand their global remittance offering.”
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