The Reserve Bank of India on Monday said it has partially relaxed restrictions placed on SBM Bank India on transactions under the liberalised remittances scheme. Under the scheme, non-resident Indians can freely remit up to $0.25 million in a financial year, through capital or current account transactions.
“It has been decided to partially relax the restrictions by allowing ATM/POS transactions under LRS through KYC compliant internationally active debit cards issued by the bank,” the central bank said in a statement.
The relaxation will be effective till March 15 or till a further order by the RBI. Last week, the central bank had directed the lender to immediately stop all transactions under the scheme, based on supervisory concerns.
The bank has tie-ups with several fintechs for its remittance business, including airpay, BookMyForex, HOPRemit, Vested, Instarem and INDmoney. Vested Finance had earlier said it has paused processing fresh deposits under the scheme, but existing users can use their bank accounts to deposit US dollars.
SBM Bank India is an arm of State Bank of Mauritius and is the first foreign bank to receive a universal banking licence as a wholly owned subsidiary offering banking services in India. The bank last week raised `99 crore via tier-II bonds from Life Insurance Corporation of India and has so far raised `234 crore through such bonds.