SBM Bank gets relaxation from RBI till March 15
RBI allows SBM Bank users to use their debit cards for physical purchase at Merchant outlets and ATM Cash Withdrawal overseas till March 15, 2023
Reserve Bank of India has partially relaxed restrictions on SBM Bank India by allowing ATM/POS transactions under Liberalized Remittance Scheme (LRS) through its KYC compliant internationally active debit cards. This relaxation till March 15, has been made to provide relief to the affected customers of the bank, the RBI said on Tuesday.
On January 23, the Reserve Bank of India had asked SBM Bank (India), the Indian subsidiary of State Bank of Mauritius, to immediately stop transactions under the LRS, following certain significant supervisory concerns noticed in the bank.
The LRS scheme allows Indian residents to send up to $250,000 abroad each financial year.
The RBI said the bank has since initiated corrective action and submitted for relaxation of the restrictions.
SBM started operations in India on December 1, 2018. It was the first universal bank in the country to obtain a banking license from the RBI through the Wholly Owned Subsidiary (WOS) route.
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