IndusInd Bank joins hands with Ripple to establish cross-border remittance
IndusInd Bank, on 27 February 2018, announced that it would be partnering with blockchain enterprise, Ripple, in order to carry out cross-border payments. They would be incorporating blockchain technology to facilitate this. Through this, IndusInd bank looks to strengthen its existing payment channel.
RippleNet is a blockchain solution provider which works in the global payments sector. It uses a decentralized global network, which has blockchain as its backbone, to strengthen bank payments and transactions. Through the affiliation, RippleNet looks to strengthen its network in emerging markets such as China, India, and Brazil.
Officials from the IndusInd bank said that they are looking to make the payments quicker and safer with the use of blockchain technology. They are also looking to cut down on the transaction fees or commission. Through RippleNet, financial firms can communicate directly between themselves regarding transactions, thereby reducing the transaction time.
Ramesh Ganesan, Senior Executive Vice President at IndusInd Bank, said,
“We plan to leverage the Ripple platform to provide an enhanced experience to our clients by delivering instant settlements and atomic confirmations on the back of a highly secure infrastructure. Building a digital platform that enhances client experience is a core part of our strategy and we are confident that our partnership with Ripple is another step in that direction. This will deliver more value to remitters, recipients and our institutional partners across the world.”
Ripple had extended its services to two companies, namely American express and Santander bank, last November, helping them with cross-border payments. Recently, RippleNet had mentioned Google as one of their corporate investors, with Google play partnering with them. With the news still fresh, they have started a venture with IndusInd bank now, introducing blockchain technology to the bank for better transactions. According to a few sources, Ripple’s global payment network has over 75 banks. With the number of banking partners increasing, Ripple has set high goals for itself this year, extending its reach to several countries.
Patrick Griffin, Head of Business Development at Ripple, said,
“The payments problem is a global problem, but its negative impact disproportionally affects emerging market. Whether it’s an engineer in the US sending money to his family in India, or a small business owner in Brazil trying to move money to their suppliers in another country, it’s imperative that we connect the world’s financial institutions into a payments system that works for their customers, not against them.”
With remittances playing a huge role in India’s economy, Ripple is looking forward to planting its roots firmly in India’s banking sector. According to a report by the World Bank, India received $65 billion USD in remittances in 2017, which was the highest for any nation. These numbers are sure to rise with the implementation of blockchain technology in India’s banking sector, thereby bringing more transparency to the transactions.
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