LIC, Dhanlaxmi Bank ink pact for e-transfer of policy payments

Mumbai: Private sector lender Dhanlaxmi Bank today said it has signed an MoU with Life Insurance Corporation of India (LIC) to facilitate the electronic transfer of policy payments.

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As per the agreement, the bank will provide electronic payment services to the corporation using the national electronic funds transfer (NEFT) mode to credit funds to policyholders’ bank accounts, a statement issued here 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,” the bank’s Cash Management Service Sales Group Head, Sidhartha Routray, said.

This move will not only benefit customers of the bank who hold LIC policies, but also LIC policyholders having accounts with other banks, he said. “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,” Routray added.

PTI