Private sector bank HDFC Bank and UAE-based Lulu Exchange have signed an MoU to strengthen cross-border payments between India and the Gulf Cooperation Council (GCC) region.
In the first phase of the partnership, Lulu Exchange's expertise and regulatory framework would be utilised to launch a digital inward remittance service titled 'RemitNow2India'.
That will allow resident individuals of UAE to send money to any bank account in India via IMPS and NEFT through HDFC's digital banking channels, a release issued by the bank on Tuesday said.
"The partnership will also look to strengthen the existing relationship between the two entities in India, where LuLu Financial Group operates LuLu Forex and the NBFC division LuLu Finserv," it said.
Arvind Vohra, Group Head of Retail Branch Banking in HDFC Bank, said the partnership will build 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 said.
Mr. Vohra also said that as a lender, HDFC Bank can help the people in UAE, particularly the Indian diaspora, to send money conveniently and in a seamless manner to India.
Adeeb Ahamed, MD, LuLu Financial Group, said they were "delighted" to partner with HDFC Bank.
"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," he is quoted as having said in the release.
Both HDFC and LuLu Exchange will leverage each other's regulatory technology and vast service network to extend the partnership through a series of online and offline initiatives, the release said.
