Dhanlaxmi Bank signs MOU with LIC for e-payments

Dhanlaxmi Bank, one of India’s fastest growing mid-size private sector banks, has signed a Memorandum of Understanding with Life Insurance Corporation of India facilitating policyholders to receive policy payments through electronic funds transfer.

As per the agreement, the bank will provide electronic payment services to the corporation using National Electronic Funds Transfer (NEFT) mode to credit funds to the policyholders’ bank accounts.

This move is not only going to directly benefit customers of Dhanlaxmi Bank who hold LIC policies but also aid LIC policyholders having accounts with other banks. The bank will use the NEFT facility to transfer funds to policyholders’ account across other banks.

At the MoU signing ceremony, Mr. Sidhartha Routray, Head, Cash Management Service Sales Group, Dhanlaxmi Bank said: “LIC’s decision to tie-up with Dhanlaxmi Bank highlights the bank’s advancement in terms of technology, transaction processing systems and its superior delivery mechanisms. With this tie-up, LIC policyholders can expect immediate disbursal of payments in a convenient and secure environment.”

Instead of the customary process of LIC sending the cheques through postal services and customers depositing in their bank accounts, e-payment will now happen within 24 hours.