The service is the first of its kind to be offered by a high-street bank and aims to provide a one-stop-shop to help the country's Indian population manage their finances and property purchases, said Lloyds TSB, Britain's fifth largest bank.
"More than one million Indians now live and work in the UK and this number is on the rise. But the community's links with India remain strong and many British Indians have businesses, properties and families," said Gordon Rankin, director of Lloyds TSB Community Financial Services.
The service is one of Lloyds TSB initiatives designed to meet the financial needs of Britain's diverse communities, he said.
Lloyds TSB's partnership with ICICI Bank, India's second largest bank, means that customers transferring money between India and the UK will benefit from preferential exchange rates.
The service will give customers access to ICICI Bank's network of 560 branches in India. Customers who want to take advantage of the free money transfers or the rupee mortgage need to visit one of the participating branches to open a Lloyds TSB current account, Rankin said.
Once this account is opened, an account will also be opened for the customer in India, through ICICI Bank and money transfers can then be made between these accounts.
"The India banking service is designed with the needs of this community in mind and should help a large and vital part of the population get the most out of their money," Rankin said.
"The India banking service is a real landmark for the Indian community in Britain and for financial services in general," said Sonjoy Chatterjee, managing director and CEO of ICICI Bank UK Ltd.
"By creating a strategic partnership with Lloyds TSB, we're demonstrating how the changing needs of customers can be met across global boundaries. This unique platform will leverage the complementary strengths of both ICICI Bank and Lloyds TSB in a way that truly meets the customer's financial needs in an efficient manner," he said.