RBI partially relaxes remittance transaction restrictions on SBM Bank (India)

Mumbai (Maharashtra) [India], February 1 (ANI): The Reserve Bank of India (RBI) has partially relaxed the restrictions it had imposed on SBM Bank (India) Ltd to stop all transactions under the Liberalised Remittance Scheme (LRS).

The RBI said the relaxation came after the bank initiated corrective actions and made a submission for relaxation of the restrictions. “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 relaxation is up to March 15, 2023, or until further orders, whichever is earlier, the release further said. 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 USD 2,50,000 every financial year, according to RBI.
The scheme was initially introduced on February 4, 2004, with a limit of USD 25,000.
The LRS limit has been later revised in stages consistent with prevailing macro and micro economic conditions.