Kotak Mahindra Joins RippleNet for Instant International Remittance
A major Indian private bank, Kotak Mahindra is the latest financial institution to join RippleNet, now the inward remittances will be enabled by Ripple’s enterprise blockchain network.
Kotak Mahindra Bank announced that it will use San Francisco-based Ripple’s blockchain technology to power inward international remittances in India which currently the world’s largest remittance receiver.
xCurrent is a Ripple’s enterprise blockchain software and Kotak will use this to enable end-to-end tracking of instant payments and settlements over RippleNet, the company’s enterprise blockchain network.
Notably, the blockchain solution does not use Ripple’s token cryptocurrency XRP, which powers a separate product in xRapid.
By using xCurrent, Kotak says the average time to settle international money transfers could come down to minutes instead of several days. The bank’s retail users can also remit smaller sums of money frequently at lower rates, the bank confirmed.
Kotak Mahindra’s chief digital officer Deepak Sharma said,
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.
Kotak Mahindra is one of the largest private banks in India with over 1300 branches. Along with Kotak its fellow private lenders Axis Bank and IndusInd are already existing members of the RippleNet. RippleNet is a network comprising of over 100 financial institutions including banks, payment providers, remittance operators and even a central bank.
The Saudi Arabian Monetary Authority (SAMA), the defacto central bank for the Kingdom of Saudi Arabia, joined RippleNet earlier this year to launch blockchain pilot enabling domestic banks to send payments via the network using xCurrent.
Recognizing India as a priority market with over $70 billion in inward remittances in 2017, Ripple expanded into the country by opening an office in Mumbai, the country’s financial capital.
Furthermore, Ripple revealed that the three-member Indian banks among its ranks are looking to connect through RippleNet to members outside India to offer two-way remittance services to their customers.
Follow us on Telegram!