The British arm of private sector lender ICICI Bank on Thursday launched an online savings account designed purposely for carrying out money transfers to India.

The HiSAVE Remittance Account promises dual benefits for account holders: easy money transfers to India and 1.50 per cent interest on the balance maintained.

The HiSAVE Remittance Account is an online-only account that allows its holders to set a minimum exchange rate at which to transfer money to India. It will make sure that the money is transferred only at the fixed exchange rate or higher.

The bank said in a statement, "They will also have the option to set a "Rate Block" on transfers to India, which means that customers can set a minimum exchange rate at which to transfer and ICICI Bank will ensure that money is sent only at that exchange rate or higher."

The HiSAVE Remittance Account, which can be opened & managed online, does not force holders to maintain a minimum balance. The bank also allows customers open and maintain a fixed deposit account within HiSAVE account. However, the fixed account requires a minimum balance of 1,000 pounds.

The money transfers will be completed within 24 hours. In case of defaulting, the bank will compensate customers by paying 5 pence for every 10 pounds transferred.