One of the largest state of India that is Kerala has around 35% for all the foreign remittances which has come into India and one bank which is more prominent is Federal Bank, which is also a major commercial bank available in India which accounts for 35% of the entire remittances that come into Kerala. After getting this, now the bank is also building a new cross border remittance application on Corda, a latest blockchain platform which is developed IT Consortium firm R3.
R3 (R3CEV LLC) is a distributed database technology company which is highly and much more supported by a more than 200 firms which also includes the banks and financial institutions such as Bank of America, Merrill Lynch, HSBC, RBS and Temasek, among others.
R3’s Corda, on top of which Federal bank is building its one of the largest remittance app, which is also an active open source project that is free to use and available with an Apache 2 license. Corda’s code was open-sourced in the month of November 2016.
Bangalore-based blockchain startup DigiLedge is also helping Federal bank to develop this sort of remittance app for “faster and cheaper” remittances.
Digiledge has built an international remittance platform built on CORDA DLT platform. The platform helps banks and money exchange houses to improve the operational efficiency of international money transfer process by exploiting the properties of distributed ledger.
According to Digiledge’s CEO Mahesh Govind said that Corda brings the benefits of “confidentiality and privacy of business transactions.”
Federal Bank said in a statement, “We at Federal Bank have been practicing the philosophy of ‘Digital at the fore and human at the core’ for all our operations. When it comes to serving our [non-resident Indian] clientele, we employ the best of class technology to make them feel closer to home. This platform translates into safer, faster and cheaper foreign remittances to India.”
World Bank data indicated that India was the beneficiary of about $69B in remittances, and Federal Bank is aiming to corner this lucrative market.