RBI asks SBM Bank to put brakes on remittance transactions immediately

The Reserve Bank of India has asked SBM Bank (India), the Indian subsidiary of State Bank of Mauritius (SMB), to immediately stop transactions under the Liberalised Remittance Scheme (LRS) until further notice.

The banking regulator in a statement said the action was based on certain material supervisory concerns observed in the bank. It, however, did not elaborate on the nature of concerns.

LRS pertains to external remittances by resident individuals for purposes like abroad studies, medical treatment, maintenance of close relatives, and investments and travel.  

SBM commenced operations in India on December 1, 2018. It was the first universal bank