One of the biggest banks in India, Kotak Mahindra, has announced its collaboration with a subsidiary of Ripple, a blockchain-enabled cross-border payment remittance system, RippleNet.
The Wednesday press release by Kotak Mahindra announced that the bank will make use of Ripple’s xCurrent settlement solution which will help reduce the average time taken with remittance payments from days to within minutes. This would help to instantly settle cross-border payments and help in tracking the process end-to-end.
In an interview, the Chief Digital Officer of Kotak Mahindra, Dinesh Sharma told the bank is always looking for new technologies to enhance and simplify its customers’ banking experience and the collaboration with xCurrent allows the bank to be more transparent. He further added that by using the blockchain and joining forces with RippleNet not only makes the global payments service efficient but also expands the network and connect with other members across the globe.
Earlier in the month, Kotak Mahindra had sent out a warning to its customers forbidding the use and trade of cryptocurrency or any form of virtual currency using their accounts with Kotak. They had also requested their customers to stop dealing with transactions involving Bitcoin or any other cryptocurrency.
Now with this new development, the Managing Director of MENA and South Asia at Ripple, Navin Gupta commented that Kotak Mahindra can offer its customers an improvement in their experience with inward remittance payments due to its collaboration with xCurrent and Ripple.
Payment remittance in India has been at an all-time high in the past year. The country received an inward remittance payment worth $69 billion in the year 2017-2018 and the outward remittance payment saw an increase of 38.7% in 2017-2018 from $8.2 billion to $11.3 billion in 2016-2017. Navin Gupta also expressed the problems with payments not just being a local problem but a global issue, especially in developing markets.[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. ]