HDFC Bank and Lulu Exchange have inked a deal to enhance cross-border payments between India and the GCC region. HDFC Bank is India’s biggest private sector bank, while Lulu Exchange is a financial services firm based in the UAE.
The initial stage of the collaboration between HDFC Bank and Lulu Exchange will leverage Lulu Exchange’s regulatory structure and know-how to launch a digital inward remittance service, known as ‘RemitNow2India,’ which will enable UAE residents to use HDFC Bank’s digital banking channels to transfer money to any bank account in India via IMPS and NEFT.
“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,” said Arvind Vohra, group head – Retail Branch Banking, at HDFC Bank.
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. “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 at LuLu Financial Group.
HDFC Bank and Lulu Exchange will collaborate on a variety of online and offline initiatives, leveraging each other’s reputation, trustworthiness, regulatory technology, and extensive service network. According to the latest “Migration and Development” report by the World Bank, India received the highest amount of remittances in 2022, surpassing $100B for the first time.
The report also highlights that the top five nations for remittances include Mexico with $60 billion, China with $51B, the Philippines with $38 billion, and Egypt with $32B. Additionally, the RBI’s Remittance Survey 2021 indicates that the United States, the UAE, the United Kingdom, and Singapore are the top four countries that send remittances to India. These countries together account for 54% of India’s total remittance inflows.
