Indian private sector lender Kotak Mahindra Bank has joined Ripple’s enterprise blockchain network RippleNet to facilitate international remittances.
Under the partnership, Kotak will utilise Ripple’s settlement solution called xCurrent to support real-time cross-border transaction services in a secured way.
The bank said that xCurrent will lower average time taken for remittance payments from multiple days to minutes as well as enable tracking throughout the transaction process.
In addition, xCurrent payments also involve lower fees, the bank said.
Kotak 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.”
Ripple managing director of South Asia and MENA Navin Gupta 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.”
In 2017-18, India secured $69bn worth of inward remittances. The country’s outbound remittances were worth $11.3bn during the same period.