Action against SBM Bank (India) Ltd., under section 35 A and 36 (1) (a) of the Banking Regulation Act, 1949 - Partial Relaxation

Case Brief

The Reserve Bank of India has partially relaxed an earlier order against SBM Bank (India) Ltd. The original direction, issued on January 23, 2023, required the bank to stop all transactions under the Liberalised Remittance Scheme (LRS) with immediate effect because of material supervisory concerns. After the bank initiated corrective actions and sought relaxation, RBI allowed ATM/POS transactions under LRS through KYC-compliant internationally active debit cards issued by the bank. The relaxation is time-bound, lasting until March 15, 2023 or until further orders, whichever is earlier.