The HDFC Bank on Wednesday announced its partnership with the UAE-based financial services company Lulu Exchange to strengthen cross-border payments between India and the Gulf Cooperation Council (GCC) region.
Both sides have signed a memorandum of understanding (MoU) to enable remittances to India through HDFC’s online and mobile banking powered by LuLu Exchange. In a press release, the bank said they will launch the ‘RemitNow2India’ service for quick money transfer from UAE.
In the first phase, the bank said, the partnership will draw on the Lulu Exchange’s expertise and regulatory framework to launch the ‘RemitNow2India’, a digital inward remittance service, which will allow individuals in the UAE to send money to any bank account in India via IMPS and NEFT through HDFC Bank’s digital banking channels.
They will also strengthen their existing relationship. Currently, the LuLu Financial Group operates the LuLu Forex and LuLu Finserv, a non-banking financial company (NBFC) division.
Commenting on their partnership, Arvind Vohra, the group head of retail branch banking of HDFC Bank, said: “The partnership builds on each other’s strengths. While HDFC Bank potentially gains access to remittances from Lulu Exchange’s employees, customers, and other stakeholders, Lulu Exchange can capitalise on a trusted name with a vast network.”
He added people in the United Arab Emirates (UAE), particularly the Indian diaspora, can send money “conveniently and in a seamless manner into the country.
On his part, Adeeb Ahamed, the managing director of LuLu Financial Group, said: the partnership with HDFC Bank will “enable our remittance-as-a-service platform on their digital banking solutions”.
He said, “The UAE-India payments corridor is one of the largest in the world, and this partnership will build upon existing capabilities to ease money transfer for thousands of Indian expats living in the UAE, while setting the foundation for the eventual integration of this service in other parts of GCC where we have a presence.”
The HDFC Bank said both sides will leverage each other’s “goodwill, trust, regulatory tech, and vast service network to extend this partnership through a series of online and offline initiatives”.