With a 3-year presence in India, Ripple began operations in Bangalore and Mumbai, according to Gupta. Since then, the company has managed to grow and offers its services to 5 major banking institutions: Kotak Mahindra Bank, IndusInd Bank, Yes Bank and the Federal Bank.
Details about Ripple’s corridor for India
Despite the growth in India, Ripple has not yet implemented its payment solution with the digital asset XRP, On-Demand Liquidity. In this regard, Gupta described the country as a fast growing market, and with a population of 35 million Indians living outside the country, as an attractive location for implementing Ripple’s cross-border payment solution.
Data from CoinGecko shows that the trading volume on the major crypto exchanges in India has been steadily increasing in 2020. The lifting of the ban on crypto trading by the Indian Supreme Court in early March has had a visible impact.
On the exchange WazirX, the trading volume has reached an annual high of $12 million. Furthermore, the trading volume for Zebpay peaked on August 2 with $8 million in total, demonstrating the growing adoption of cryptocurrencies in India and the market’s potential for solutions like those offered by Ripple.
The Ripple executive said that of the total remittances sent to India from abroad, 7% of the total value is lost due to fees. In this regard, Gupta stated the following:
Ripple is keen to introduce the ODL (On-Demand Liquidity) solution to the India market to make remittances faster, easier, better and cheaper through the use of digital assets.
However, Ripple has one major concern and that is the lack of clear regulation and a robust legal framework to support operations with digital assets and cryptocurrencies. However, Gupta also said the company is optimistic about India’s progress in this area.
As reported by CNF, Ripple has proposed to the Government of India a model legal framework. Presented in late June 2020, the framework proposes policies that will enable the country to benefit from blockchain technology and crypto trade. However, there has been no affirmative response from the government.