A private commercial bank in India intends to launch Ripple‘s cross border payments platform. Federal Bank hopes to introduce the platform before 2019 ends.
Federal bank to utilize Ripple for cross border payments
The bank has joined hands with Ripple to work on the project. The partnership was initially announced in March this year. Federal Bank stated that it would utilize Ripple’s network of financial institutions to “explore new corridors.” Regardless, it is unclear whether the Federal bank would use Ripple’s XRP to power its platform.
Federal Bank is one of the largest cross border payment options in the country. Officials claim that the bank handles nearly 15 percent of India’s cross-border remittances. The bank recorded a rise of 22 percent in its share of payments in its annual report.
Federal Bank has shown interest in Blockchain technology prior to the Ripple collaboration. The bank acknowledges Blockchain as something that will bring revolution to the modern technological world. The bank believes that sooner or later, it will be a significant part of the financial service industry as it has a wide range of uses.
The bank has piloted the use of blockchain for cross border payments back in 2017 and had also launched a platform for it too. Now the company has “revamped the whole platform” and has joined hands with the Lulu Exchange to make remittances to India using this platform.
Although India remains anti-crypto, banks and other financial institutions are still able to integrate blockchain for payment services. This is not the first time for the sub-continent to utilize the Ripple network. Previously Pakistan’s Faisal Bank had partnered with Ripple for cross-border payment.