Axis Bank & J.P. Morgan Unveil Game-Changing 24/7 Dollar Payments – A Revolutionary Boost for Indian Businesses
Axis Bank has partnered with J.P. Morgan to introduce a groundbreaking 24/7 U.S. dollar payment service for Indian businesses. This initiative, powered by Kinexys, J.P. Morgan’s blockchain and digital assets platform, allows companies to process dollar transactions anytime, eliminating traditional banking cutoffs. The service will be facilitated through Gujarat International Finance Tec-City (GIFT City), enhancing liquidity, reducing delays, and improving cross-border payment flexibility. Previously, businesses could only make same-day settlements, but now they can send payments even on weekends or outside banking hours.
This is particularly beneficial for transactions with regions like the Middle East, where Sundays are working days. According to Neeraj Gambhir of Axis Bank, this move streamlines payments and unlocks new financial opportunities. Naveen Mallela from Kinexys emphasized that the system ensures full payment transfers without deductions, reducing liquidity costs. This innovation marks a significant step in modernizing India’s financial ecosystem and strengthening global trade connections.
Axis Bank & J.P. Morgan Unveil Game-Changing 24/7 Dollar Payments – A Revolutionary Boost for Indian Businesses
In a groundbreaking move for India’s financial sector, Axis Bank has partnered with global banking leader J.P. Morgan to introduce round-the-clock U.S. dollar payment services for businesses. This initiative, powered by J.P. Morgan’s blockchain-based platform Kinexys, marks the first time an Indian institution can process dollar transactions at any hour, breaking free from traditional banking time constraints. The service, based in Gujarat International Finance Tec-City (GIFT City), aims to streamline international trade by enhancing efficiency, reducing delays, and offering unmatched flexibility.
Breaking Free from Banking Hours
Currently, businesses in India can settle same-day international payments, but rigid banking deadlines often create bottlenecks. Payments initiated after a bank’s daily cutoff time are typically delayed until the next business day, causing inefficiencies for companies dealing with global partners in different time zones. The new 24/7 service eliminates these barriers, allowing transactions to be processed instantly, even on weekends or holidays. A key example highlighted by the banks is that Indian businesses can now send payments to Middle Eastern partners on Sundays—a regular workday in the Gulf region but a banking holiday in India. This flexibility ensures smoother operations for industries like exports, manufacturing, and IT services, where timing is critical.
GIFT City: India’s Financial Hub for Innovation
The service will operate from GIFT City, a rapidly growing financial and technology hub designed to rival global centers like Singapore and Dubai. Known for its business-friendly regulations and advanced infrastructure, GIFT City provides an ideal environment for testing cutting-edge financial solutions. By anchoring this initiative here, Axis Bank and J.P. Morgan aim to position India as a competitive player in global finance. Neeraj Gambhir, Group Executive of Treasury, Markets & Wholesale Banking at Axis Bank, emphasized that the collaboration will “revolutionize cross-border transactions by improving liquidity management and reducing dependency on intermediaries.”
How Blockchain Powers Efficiency
At the core of this service is J.P. Morgan’s Kinexys platform, which leverages blockchain technology to enable real-time settlements. Unlike traditional systems that rely on multiple intermediaries—each adding time and cost—blockchain allows direct, secure transfers between parties. This eliminates delays caused by time zone differences or banking holidays. Naveen Mallela, Global Co-Head of Kinexys, explained that the platform ensures “funds move seamlessly, reducing liquidity costs and guaranteeing the full payment amount reaches the recipient without deductions.” For businesses, this means no hidden fees or partial settlements, which are common in conventional cross-border transfers.
Benefits for Indian Businesses
- 24/7 Accessibility – Companies no longer need to rush transactions before banking hours end. Payments can be initiated anytime, including weekends, aligning with global work schedules.
- Cost Savings – By cutting intermediaries and automating processes, businesses save on transaction fees and liquidity management expenses.
- Faster Settlements – Real-time processing accelerates trade cycles, improving cash flow for exporters and importers.
- Transparency – Blockchain’s immutable ledger provides end-to-end visibility, reducing disputes and enhancing trust between parties.
A Step Toward Financial Modernization
This collaboration reflects India’s broader push to modernize its financial infrastructure and attract global investment. With initiatives like the Unified Payments Interface (UPI) revolutionizing domestic payments, the focus is now shifting to cross-border efficiency. The partnership between Axis Bank and J.P. Morgan aligns with the government’s vision to position GIFT City as a hub for fintech innovation.
Looking Ahead
The service is expected to benefit sectors like pharmaceuticals, textiles, and technology, where timely payments are crucial. For example, an Indian pharmaceutical supplier can now receive immediate dollar payments from a U.S. buyer outside Indian banking hours, ensuring uninterrupted cash flow. Similarly, IT firms paying overseas contractors or purchasing software licenses can avoid delays caused by time zone mismatches.
As global trade becomes increasingly interconnected, solutions like 24/7 dollar payments will play a vital role in maintaining India’s competitiveness. By combining Axis Bank’s domestic expertise with J.P. Morgan’s global reach and blockchain capabilities, this initiative sets a new standard for efficiency in international finance—one that other institutions may soon follow.
In summary, the Axis Bank-J.P. Morgan partnership is not just a technological upgrade but a strategic leap toward making India a key facilitator of global commerce. For businesses, it means faster, cheaper, and more reliable cross-border transactions—a game-changer in today’s 24/7 economy.