HDFC Bank And UAE Based Lulu Bank Sign Contract To Improve Cross Border Payments

The largest private sector bank in India, HDFC Bank, and a financial services firm located in the UAE, Lulu Exchange, signed a contract to improve cross-border payments between India and the GCC.

The partnership will create a digital inward remittance service called "RemitNow2India" in its initial phase. This service will enable residents of the UAE to send money to any bank account in India via IMPS and NEFT through HDFC's digital banking channels.

“Our 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. As a bank we can help the people in UAE particularly the Indian diaspora to send money conveniently and in a seamless manner into the country,” Arvind Vohra, group head – Retail Branch Banking, HDFC Bank, said.

The two companies' relationship in India, where LuLu Financial Group runs LuLu Forex and the NBFC division LuLu Finserv, would also be strengthened as a result of the agreement.

“We are delighted to partner with HDFC Bank and enable our remittance-as-a-service platform on their digital banking solutions. 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,” said Adeeb Ahamed, MD, LuLu Financial Group.

Through a number of online and offline efforts, HDFC and LuLu Exchange will build on their mutual goodwill, trust, regulatory expertise, and extensive service networks to further this cooperation.

The top five countries for remittances in 2022, according to the World Bank's most recent "Migration and Development" report, were India ($100 billion for the first time), Mexico ($60 billion), China ($51 billion), the Philippines ($38 billion), and Egypt ($32 billion).

Also, according to the most recent statistics from the RBI's Remittance Survey 2021, the United States, the United Arab Emirates, the United Kingdom, and Singapore are the top four nations for sending remittances to India, and they collectively account for 54% of India's remittance inflows.