CBA, ICICI Bank sign MoU to support customers across Australia-India corridor
The MoU aims to support customers migrating between the two countries. Credit: Commonwealth Bank of Australia. · Retail Banker International · Commonwealth Bank of Australia.

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The Commonwealth Bank of Australia (CBA) has signed a memorandum of understanding (MoU) with ICICI Bank to enhance support for customers across Australia-India corridor.

The partnership aims to bolster the Australia-India banking corridor, coinciding with the recent economic agreements between the two nations.

CBA Group business banking executive Mike Vacy-Lyle said: “The business environment presents significant opportunities for both Australian and Indian businesses and we are excited to partner with ICICI Bank to better facilitate trade and advance prosperity in both countries.

“We understand that doing business in another country can present challenges as well as opportunities for businesses. That is why we are delighted to be working with ICICI Bank to give our business customers dedicated access to a leading banking partner across the corridor.”

The MoU will allow both banks to explore collaborative efforts to assist corporate and business customers looking to invest or establish operations in the other bank's home country.

It is expected to ease trade for customers by offering banking services and advising on cross-border trade opportunities.

Additionally, the MoU aims to support customers migrating between the two countries and enhance cross-border payment services through customer-centric solutions.

CBA is engaging with customers through workshops in Sydney and Brisbane, with ICICI Bank's participation, to deepen understanding and spur growth in the Australia-India corridor.

These initiatives follow the implementation of the Australia-India Economic Cooperation and Trade Agreement (ECTA), which took effect on 29 December 2022.

Under ECTA, a significant portion of Australian goods exported to India are now tariff-free, as are the majority of Indian imports to Australia.

Both countries anticipate further tariff reductions to encourage increased trade.

ICICI Bank executive director Rakesh Jha said: “We are delighted to enter in a partnership with Commonwealth Bank of Australia. India has emerged as a preferred destination for foreign investments, across manufacturing, Global Capability Centres and capital markets.

“Australia and India have strong bilateral relations and there are several opportunities across our respective ecosystems, which this partnership seeks to harness.

“We are confident that ICICI Bank, with its 360-degree customer centric approach, extensive franchise and technology-enabled offerings is well placed to support CBA in serving the holistic banking requirements of its customers in India.”