Mumbai (PTI): Telecom major Idea Cellular Ltd and UAE-based telco Etisalat on Wednesday announced a pilot project for mobile money remittance from the Gulf region to Kerala.

The pilot will have Tata Communications as the central hub for services and HSBC India as the banking channel for funds transfer, company officials told reporters here.

"The service will enable expat Indian subscribers of Etisalat in Gulf to transfer money to any designated bank account of an Idea subscriber in Kerala," Idea Chief Marketing Officer Pradeep Shrivastav said.

Though the companies were still arriving at a cost for the service, Idea claimed it will be lesser than existing money transfer operators.

"We are committed to offer the service at a cost lesser than other exchange and remittance services," Shrivastav said.

Elaborating on the operations, Tata Communications Executive Vice President Allan Chan said, "The subscribers of Etisalat will authorise the payment through mobile wallet service."

HSBC will receive the money through UAE bank and will forward it through National Electronic Fund Transfer to one or multiple designated accounts in Kerala.

Tata Communications will coordinate on both the ends and will generate a SMS for the Idea subscribers as soon as the funds are received in the Idea subscriber's bank account.

"We are looking at same day transfer of funds, provided the sender gives authorisation by a desired deadline to enable us to complete all regulatory checks before we transfer funds," HSBC Deputy CEO Neelesh Heredia said.