All That You Need to Know About An Indian Bank’s Collaboration With RippleNet
According to recently published news is finally embracing blockchain technology. The latest news is that the bank has entered a partnership with Ripple and its payment network RippleNet to facilitate cross-border payments to India and to enable Indians in diaspora transfer funds across borders.
This marks the upgrading of India’s existing payment rails to blockchain-based solutions which it hopes to increase its 15% share of the remittance market. The bank has also launched a platform that will allow Non-Resident Indians (NRIs) send money via exchange houses and banks using the irtual Payment Address (VPA) for each NRI using the services.
International transactions have been a problematic area in India for a long time, with available methods being time-consuming and overly complicated. A report from February 2019 indicates that Indians spent $2.3 billion in remittance fees in the year 2018 alone. This has led the Indians in the diaspora to push for the adoption of blockchain payment solutions to make funds transfer easier and cheaper.
Their dreams have finally come true and with the help of the federal bank according to the bank’s MD & CEO Shyam Srinivasan. He said,
“Federal Bank is an important part of the remittance eco-system to India, so, it is only natural for us to offer the latest technology to our customers and remittance partners such as exchange houses and banks… For long Federal Bank has endeavored to bring our non-resident clientele closer to their homes. Each of our digital offerings has been designed with this objective in mind.”
The atmosphere regarding Bitcoin and cryptocurrency in India is still uncertain at best as they still have not been granted legal grounds to operate. This adoption will help in boosting business in India and will also assist NRIs to make international transactions. Merchants are looking for easier and cheaper remittance services for their businesses and more may just be attracted to the country. Ripple and XRP have been going places and this is another major breakthrough which is likely to push XRP price up on the market.