Indian private sector lender Kotak Mahindra Bank joined Ripple's enterprise blockchain network RippleNet to enable faster inward cross-border remittances for its customers. India is the world's largest remittance receiver, according to a recent report.
Kotak will use Ripple's blockchain-based settlement solution, xCurrent.
xCurrent is expected to help Kotak reduce the average time associated with remittance payments to minutes compared to the several days earlier. The solution also tracks the entire transaction process from end-to-end on blockchain.
It is also claimed that the costs and fees for Kotak customers for inward payments will be lower.
RippleNet has a connected network of financial institutions and payment providers to send money across the globe.
Kotak joins other major banks in using RippleNet. In November, Axis Bank had gone live using xCurrent, and in February IndusInd.
Earlier too, Kotak Mahindra Bank has used blockchain technology, that reduced the time of completing a letter of credit transaction with JP Morgan, Singapore to just a few hours from the normal 20 to 30 hours.
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