Kerala accounts for 35% of all foreign remittances that come into India and one bank that predominates in Kerala is Federal Bank, a major commercial bank in India that accounts this 35% of the remittances that come into Kerala. Seeing this, the bank is building a new cross-border remittance application on Corda, a Blockchain platform developed by consortium firm R3.
R3 (R3CEV LLC) is a distributed database technology company supported by a more than 200 firms including 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 remittance app, is an active open source project that is free to use and available with an Apache 2 license. Corda’s code was open-sourced in November 2016.
Bangalore-based blockchain startup DigiLedge is helping Federal bank to develop this 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.
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