The collaboration with Ripple comes as part of a wider initiative to implement new technologies to the bank’s payments network. Further, on 28th March, Federal Bank started two remittance platforms in the United Arab Emirates for making payments to India.
One of the platforms will reportedly enable non-resident Indians (NRIs) in the United Arab Emirates (UAE) to send money through exchange houses and banks utilizing the Virtual Payment Address of the recipient.
Federal Bank, which made $1.5 billion in revenue in 2018, purportedly controls 15 percent of the Indian remittances market and is exploring how new technologies like blockchain could help increase its share of business. Federal Bank CEO Shyam Srinivasan told Gulf News:
“Federal Bank is an essential part of the payment eco-system to India, therefore, it is only natural for us to offer the latest technology to our users and remittance partners like exchange houses and banks.”
The bank said that Ripple “assures that cross-border transaction are much safer and secured.”
Ripple has been gaining traction as banks worldwide think whether the network could help enhance their cross-border remittances services. In February, Oman’s second-largest bank by market value, BankDhofar, started using RippleNet technology for cross-border payments to India.
The fourth and biggest of a series of blockchain supporter rallies is set for Bangalore on 30th March and is expected to have a huge public impact because of the planned participation of various developers.
The public outcry after an embargo from the Reserve Bank of India (RBI) last year when RBI ordered financial institutions to stop dealing with digital currency businesses.