Kotak Mahindra Bank is India’s second-largest private bank with a market capitalization higher than the combined value of Yes Bank and Axis Bank. They have announced a partnership with blockchain company Ripple to improve cross-border remittances through Ripple’s xCurrent technology.
In addition, the bank plans to deploy the xCurrent blockchain settlement solution, which will reduce remittance payment time to a few minutes.
According to a recent survey, India’s cross-border remittances in the last fiscal year reached $69 billion, eight times the size of remittances. As the scale of cross-border remittances has increased year by year, many Indian banks such as ICICI Bank, Yes Bank and Axis Bank are exploring blockchain technology to improve efficiency and reduce costs.
Kotak Mahindra bank chief digital officer DeepakSharma, according to the Current solution can bring to customers in a more transparent and efficient global payment services, to join RippleNet network can also make Kotak Mahindra bank get in touch with other financial members, to further expand their global network. XCurrent meets all the needs and enables us to use blockchain technology to provide customers with more transparent and efficient global payment services.
Navin Gupta, Ripple’s managing director for South Asia, said:
“The payment problem is a global problem, especially for emerging market countries that are trying to send conventional, low-value remittances overseas. Kotak Mahindra can provide its retail customers with a progressively improved inward remittance experience through xCurrent, and we look forward to expanding their global remittance business by connecting them with other RippleNet members.
More than 25 global financial institutions, including the well-known British bank Santander, use Ripple’s xCurrent to enhance the customer experience in cross-border transactions.
In addition, Ripple has another advanced technology called xRapid that provides liquidity for cross-border payments. However, this product has not yet been adopted by most banks.
According to a recent survey, India’s foreign exchange remittances in the last fiscal year have reached $69 billion, eight times its foreign exchange payments. As inflows of cross-border remittances increase every year, many Indian banks, such as ICICI Bank, Yes Bank, Axis Bank, etc., are looking for various blockchain technologies to advance their online transactions.
Recently, ALIPY, China’s largest online payment provider, also launched blockchain-based cross-border payments based on blockchain technology. PAYPAY.ME has been reported earlier. It is foreseeable that more companies will adopt blockchain technology in the future to serve cross-border payments.
Related links:Alipay launched cross-border payment based on the blockchain- a new breakthrough in the blockchain application scenario
Part of this article is from ambcrypto