Case Brief
What Happened
The Reserve Bank of India imposed a monetary penalty on SBM Bank (India) Ltd. by order dated April 10, 2024. RBI said the bank failed to comply with licensing conditions and specific directions, including a direction to stop undertaking Liberalised Remittance Scheme (LRS) transactions with immediate effect. The bank was also found to have engaged Business Correspondents for account-based relationships with customers from certain regions despite RBI not acceding to that request. The penalty was imposed under section 47A(1)(c) read with section 46(4)(i) of the Banking Regulation Act, 1949.