RBI partially relaxes remittance transaction restrictions on SBM Bank
1 min read . Updated: 01 Feb 2023, 11:09 AM IST
Premium- RBI said that the bank initiated corrective actions and made a submission for the relaxation of the restriction
The Reserve Bank of India (RBI) on Wednesday partially relaxed the restrictions it had imposed on SBM Bank (India) ltd to stop all transactions under the Liberalised Remittance Scheme (LRS).
The central bank said that the bank initiated corrective actions and made a submission for the relaxation of the restriction.
In a press release, the reserve bank said it has lifted restrictions on SBM allowing ATM/POS transactions under LRS through KYC-compliant internationally active debit cards issued by the bank.
"Based on the submission and also to provide relief to the affected customers of the bank, 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 RBI said in a release.
The RBI's relaxation up to March 15, 2023, or until further orders, whichever is earlier, the release added.
Initially, the action was taken based on certain material supervisory concerns observed in the bank.
Under the Liberalised Remittance Scheme, all resident individuals, including minors, are allowed to freely remit up to $2,50,000 every financial year, according to RBI.
The scheme was initially introduced on February 4, 2004, with a limit of $25,000.
The LRS limit has been later revised in stages consistent with prevailing macro and micro economic conditions.
