India's SBM Bank says working with RBI on supervisory concerns

BENGALURU Reuters -- Bank India is engaging with the RBI to address supervisory concerns, the lender said in an email to a customer reviewed by the regulators, days after the regulators barred it from some transactions.

The RBI ordered the Bank to stop all transactions under the liberalised remittance scheme LRS until further notice, citing material supervisory concerns but no more detail.

A banking source told Reuters earlier this week that the central bank had concerns that certain overseas money transfer practices of SBM's fintech partners did not follow the appropriate procedures, despite the fact that the discussions were private.

The LRS scheme allows Indian residents to send up to $250,000 abroad each financial year.

We would like to state that Bank India Ltd. is committed to upholding the highest standards of banking. SBM Bank IndiaBank India Ltd. is open for business in all other areas, according to the email.

SBM Bank IndiaBank India is a unit of the State Bank of MauritiusBank of Mauritius and became the first foreign bank to receive a universal banking licence under an Indian scheme for wholly owned subsidiaries, which allowed foreign lenders to compete with Indian banks.