Ripple’s xCurrent Makes an Entry Into India Through Kotak Mahindra Bank
The Ripple company and its products have continually helped banks realize the efficiencies of remittance services on the blockchain. The most recent bank to partner with Ripple, is the Kotak Mahindra Bank – which is a leading bank in India with over 1,300 branches. The bank is now a member of RippleNet: a decentralized network of payment providers and banks that connect to each other through Ripple’s technology.
Kotak will use Ripple’s xCurrent to power instant remittance payments into the country. India has been on record as being a receiver of international remittances to the tune of $69 Billion in 2017. This means that Kotak will now be making such remittances quicker for the sender and recipient in a manner similar to the Ripple powered Santander App that was showcased less than a month ago.
xCurrent is Ripple’s enterprise software solution that enables banks to instantly settle cross-border payments with end-to-end tracking. Using xCurrent, banks message each other in real-time to confirm payment details prior to initiating the transaction and to confirm delivery once it settles.
With respect to India, the country is bracing for a cryptocurrency ban by the Reserve Bank of India. The ban will become effective after July 5th with several exchanges in the country – such as Zebpay- warning its users that Rupee withdrawals could stop once the ban is effective. This is because the ban disallows any regulated banks and financial institutions from servicing crypto exchanges from July 5th.
If Zebpay bank accounts are disrupted, rupee deposits and withdrawals will become impossible…[However] Crypto deposits and withdrawals are continuing as usual. The RBI circular only talks to banks, and other regulated entities about shutting accounts. This doesn’t affect BTC and other cryptos.
However, there is a glimmer of hope for the decision by the Reserve Bank of India (RBI) has been challenged in court by crypto traders, exchanges as well as other stakeholders. This is after the RBI itself admitted that it had made a rush decision with the ban. The hearing has been scheduled for July 3rd.
With respect to Ripple and its operations in the country, the company is confident that the ban will not last long. Ripple is betting on the Basel Norms of Banking and RBIs own panel report on digital currencies, to help reverse the ban.