Tata Consultancy Services (TCS) is India’s Leading IT services business provider and the firm has decided to use RippleNet, a distributed ledger technology-based banking solution by Ripple for its Cross border FX remittance transactions.
The move can prove a pivotal point in the ongoing tussle for regulating crypto services in India. The Supreme court of India released a circular last year stating a complete banking ban on crypto use. However, after a petition filled in the supreme court calling the ban unconstitutional, the court has ordered the government to finalize the regulatory framework giving it a 4-week ultimatum.
However, the scheduled hearing was postponed on the request of the government for 23rd July and it has put the crypto future of India in a limbo.
Thus, the news of India’s biggest IT solution provider TCS joining hands with Ripple to execute its Cross border FX remittance transactions for efficient and faster transactions is proof that the future is decentralized. TCS announced about the partnership through a Press Release, and the reasons behind the adoption are being attributed to the increasing difficulty of the firm to handle multiple existing agents for cross-border payments.
The current cross-border transaction involves numerous complexities like high transaction costs and delays in completing a remittance transaction. These issues lead up to poor customer experience as well the banks involved in the transactions.
Apart from that, the current system does not really promise a great sense of transparency related to the costs and transaction fees and create a challenge for reconciliation, stemming from a lack of real-time information on the status of the payment transaction as it traverses systems spanning various intermediaries.
TCS is a renowned name in India and considered to be a prestigious institute to work for, and their decision to go towards the decentralized space serve a great lesson for the drafting committee of the crypto regulations as well as the supreme court of India. The drafting committee must understand the delays would peg India by decades in the Industry and they would be left as a mere spectator just like the dot com boom.