RBI partially relaxes restrictions on SBM Bank India

The Reserve Bank of India has partially relaxed the restrictions on SBM Bank India by allowing ATM POS transactions under the Liberalized Remittance Scheme LRS through its internationally active debit cards. The relaxation, which is only available until March 15, was made to provide relief to affected customers of the bank, said on Tuesday.

On January 23, SBM Bank India, the Indian subsidiary of State Bank of Mauritius, had asked the Indian subsidiary of the Indian bank to immediately stop transactions under LRS after certain material supervisory concerns were observed in the bank.

The bank has since initiated corrective action and submitted for relaxation of restrictions.

A remittance of resident individuals is used for purposes like studies abroad, medical treatment, the maintenance of close relatives, investments and travel. The scheme allows Indian citizens to send up to $250,000 abroad each financial year.

It was the first universal bank in the country to get a banking licence from RBI through the wholly-owned subsidiary WOS route. It is part of the SBM Group.

According to SMB Bank India's annual report for 2021 -- 22 it has over 300 team members serving over four million clients across the country. It has a physical presence in eight locations, backed by an advanced digital solutions infrastructure.

Its total deposits were up 76.4 per cent YoY to Rs 6,799. At the end of March 2022, 44 crore were from Rs 3,855. 18 crore were a year ago. Its loan book or advances rose 49.2 per cent from Rs 2,917. 33 crore were lost to Rs 4,355 at the end of FY 21. At the end of FY 22 there were 57 crore.