One of India’s largest private banks, Kotak Mahindra, has just announced that they’re going to use Ripple’s blockchain network, RippleNet, to facilitate inward cross-border remittances.
The bank will be using Ripple’s xCurrent settlement solution to let their customers transact across borders securely, speedily, and cheaply. The company claims this new technology will allow them to close remittance payments in minutes rather than days and with lower fees.
India is the number one remittance recipient in the world with $69 billion of inward remittances in 2017. As one of the largest banks in India with over 1,300 branches, Kotak Mahindra adds a large customer base for Ripple.
Through its xCurrent and xRapid technologies, Ripple now counts more than 100 customers for its blockchain technology.
The vast majority of these customers, like Kotak Mahindra, are opting to use xCurrent, which enables cross-border payment flows without using XRP just fiat currency — unlike xRapid, which does use XRP. (Watch Ripple’s CEO Brad Garlinghouse explain the difference between xCurrent vs xRapid in the video below).
In 2017 Ripple opened up an office in Mumbai. They’re eyeing India as a customer not just because it’s top of the charts for inward remittances, but because of its growing banked population. Since 2011 the number of Indians who have a bank account has more than doubled — now more than 80% of Indian adults now have a bank account.
It appears their effort in India is paying off, as Kotak Mahindra is the third bank they’ve announced deals with after going live with Axis Bank in November and announcing a deal with IndusInd in February.
xCurrent vs xRapid
Hear Ripple’s CEO Brad Garlinghouse explain the difference between xCurrent vs xRapid or read the transcript below.