Federal Bank is an Indian private banking company who has made a partnership with Ripple Inc which is a distributed ledger firm. The main purpose of the partnership is to facilitate blockchain cross-border remittances through the Ripple network.
On 25th March 2019, the Managing Director and Chief Executive Officer at Federal Bank Limited Mr. Shyam Srinivasan signed an agreement with the Senior Vice President at Ripple Inc Mr. John Mitchell.
The partnership of Federal Bank and Ripple Inc is a part of upgrading remittance solutions of the bank. Srinivasan said, “For long Federal Bank has endeavored to bring our non-resident clientele closer to their homes. Each of our digital offerings has been designed with this objective in mind.”
On March 28, 2019, the company has launched two remittance platforms in the United Arab Emirates (UAE) through exchange houses and banks. The main purpose of the platforms is to facilitate blockchain cross-border remittances.
The first platform helps the exchange houses and banks in making a connection with the remittance solutions. The main purpose of the connection is to make seamless and real-time transactions. The platform is used by a UAE-based exchange called Lulu Exchange.
The second platform helps NRIs to use an easy-to-remember Virtual Payment Address (VPA) and send money through the exchange houses and banks.
At current, it has 15+ percent of remittance market shares to India. The expectation of the bank is to increase the shares through the blockchain in Gulf Countries.
Srinivasan said, “Federal Bank is an important part of the remittance eco-system to India, so, it is only natural for us to offer the latest technology to our customers and remittance partners such as exchange houses and banks,” Gulf News reported.
The bank will use a blockchain platform of Ripple Inc. The platform helps the bank to provide safer and secured blockchain cross-border remittances, the official website of BSE India reported.[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]