Kotak Mahindra, a large private bank in India, recently joined RippleNet, Ripple's blockchain, to facilitate domestic money transfers. Specifically, Kotak will use xCurrent software to provide end-to-end tracking of instant payments and settlements across the RippleNet network.
It is noteworthy that this blockchain solution does not use Ripple XRP cryptocurrency, which is used in a separate product - xRapid.
Using xCurrent, the average time for settling international money transfers can be reduced from several days to several minutes. Bank customers can also transfer smaller amounts of money at lower rates.
Kotak Mahindra Bank Chief Digital Officer Deepak Sharma said:
“xCurrent ticks all the boxes and this gives us the opportunity to offer customers a more transparent and efficient global payments service using blockchain technology. Joining RippleNet also expands our payment network globally, connecting us with other participants in this financial system."
With more than 1,300 branches, Kotak Mahindra is among the largest private banks in India and joins other private lending institutions such as Axis Bank and IndusInd, which also use RippleNet. The RippleNet network consists of 100 financial institutions, including banks, payment providers and money transfer operators. Earlier this year, the Saudi Arabian Central Bank (SAMA) joined RippleNet to launch a pilot project for online payment transfers using xCurrent.
India is the world's largest recipient of remittances, with domestic transfers totaling more than $70 billion in the country in 2017.
Ripple has already opened a representative office in the capital Mumbai and has announced that three more banks in India will collaborate through RippleNet with financial institutions of other countries to carry out two-way transfers through the RippleNet network.
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