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RBI asks SBM Bank to stop all remittance transactions with immediate effect

The action is based on some material supervisory concerns observed in SBM bank, the central bank said.

January 24, 2023 / 09:36 AM IST
  SBM Bank is a subsidiary of Mauritius-based SBM Holdings. SBM Group is a financial services group offering products and services including deposits, lending, trade finance and cards among others, according to its website.

SBM Bank is a subsidiary of Mauritius-based SBM Holdings. SBM Group is a financial services group offering products and services including deposits, lending, trade finance and cards among others, according to its website.

The Reserve Bank of India (RBI) on January 23 barred SBM Bank (India) Ltd
to stop all transactions under Liberalised Remittance Scheme (LRS) till further orders.

"The Reserve Bank of India has today, in exercise of its powers under sections 35A and 36(1)(a) of the Banking Regulation Act, 1949, directed SBM Bank (India) Ltd to stop, with immediate effect, all transactions under Liberalised Remittance Scheme (LRS) till further orders," the RBI said in a release.

This action is based on certain material supervisory concerns observed in  the bank, the RBI said. The central bank didn't specify what exactly are the supervisory concerns surrounding the bank.

SBM Bank is a subsidiary of Mauritius-based SBM Holdings. SBM Group is a financial services group offering products and services including deposits, lending, trade finance and cards among others, according to its website.