The Reserve Bank of India (RBI) on Monday directed the Indian unit of SBM Bank to stop all transactions under liberalised remittance scheme with immediate effect.
The order will remain in effect till further directive from the central bank.
The action is based on certain material supervisory concerns observed in the bank, the RBI said in a notification. The SBM Bank, India, is a subsidiary of Mauritius-based SBM Group, which offers banking and non-banking financial services.
The scheme allows all resident individuals to remit up to $0.25 million in a financial year through a current or capital account transaction. The account holders can avail of certain within the limit of $0.25 million.