BUSINESS

RBI Asks SBM Bank to Halt Transactions Under Remittance Scheme

RBI has asked SBM Bank to stop all remittance transactions immediately.

On Monday, the Reserve Bank of India (RBI) directed SBM Bank’s Indian subsidiary to immediately halt all transactions under the Freedom to Send Money scheme.

The order will remain in effect until further instructions from the central bank.

The RBI said in a notification that the action was based on specific significant regulatory issues observed at the bank. SBM Bank India is a subsidiary of Mauritius-based SBM Group, which provides banking and non-banking financial services.

The scheme allows all resident individuals to remit up to $0.25 million in a fiscal year through current or capital account transactions. Account holders can access certain funds up to a limit of $0.25 million.

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