Author: Jagdish Kumar, India
In order to provide provide impetus to its inward cross-border remittances, Kotak Mahindra Bank (Kotak) has signed an agreement with Ripple’s leading enterprise blockchain network (RippleNet).
Kotak will use Ripple’s settlement solution, xCurrent, to provide its customers with real-time cross-border transactions in a safe and secure manner.
By using xCurrent, it will enable the Indian bank to reduce the average time associated with remittance payments to minutes and instantly settling cross-border payments, as compared to several days. The usage will also help the bank as well as the users to track the entire transaction process from end-to-end.
The lower fees associated with xCurrent payments also make regular, small inward payments possible at a better rate for Kotak customers.
Speaking on this, Kotak Mahindra Bank Chief Digital Officer Deepak Sharma 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,” Sharma added.
“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,” Ripple’s South Asia and MENA Managing Director Navin Gupta said.
In 2017-18, India received inward remittances worth $69 billion, with the outbound remittances market increasing by 38.7% from $8.2 billion in 2016-17 to $11.3 billion in 2017-18 and continues to see steady growth and presents a significant market opportunity.
Founded in 1985, Kotak Mahindra Bank Limited is one of India’s leading financial services conglomerates with four strategic business units that includes consumer banking, corporate banking, commercial banking and treasury catering to retail and corporate customers across urban and rural India has 1,388 branches and 2,199 ATMs across the country.
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