SBM Bank (India) Ltd

RBI imposed a monetary penalty of Rs 88.70 lakh on SBM Bank (India) Ltd. for breaching licensing conditions and ignoring directions related to LRS transactions.

SBM Bank (India) Ltd. must absorb the financial penalty and remain compliant with the RBI directions cited in the order, especially the prohibition on processing LRS transactions and the licensing-condition requirements. The action does not itself cancel the bank’s licence, but it signals ongoing supervisory scrutiny and the possibility of further RBI action if non-compliance continues.

• section 47A(1)(c) read with sections 46 (4)(i) of the Banking Regulation Act, 1949

RBI partially relaxed its earlier LRS transaction restriction on SBM Bank (India) Ltd. The bank may now allow ATM/POS transactions under LRS through qualifying debit cards until March 15, 2023 or further orders.

SBM Bank (India) Ltd. regains limited ability to process ATM/POS LRS transactions through KYC-compliant internationally active debit cards. Other LRS transaction restrictions remain subject to the original RBI order unless separately relaxed or lifted, and the relief is temporary until March 15, 2023 or further orders.

• section 35 A of the Banking Regulation Act, 1949
• section 36 (1) (a) of the Banking Regulation Act, 1949

RBI directed SBM Bank (India) Ltd to stop all Liberalised Remittance Scheme (LRS) transactions with immediate effect. The action was taken because of material supervisory concerns.

SBM Bank (India) Ltd must immediately halt all LRS transactions until RBI issues further orders. This affects customers using remittance services under the scheme and limits the bank’s ability to process those transactions forward-looking.

• sections 35A and 36(1)(a) of the Banking Regulation Act, 1949

RBI imposed a ₹3 crore penalty on SBM Bank (India) Ltd. for non-compliance with directions on SWIFT operational controls and cyber security. The breach was found in relation to the bank's Indian operations after scrutiny and show-cause proceedings.

SBM Bank (India) Ltd. must bear the ₹3 crore penalty; the order does not impose a direct business restriction, but it signals regulatory censure for past compliance failures. The release does not describe any ongoing operational cap or customer-facing restriction, but it underscores the bank's obligation to maintain SWIFT and cyber-security controls in line with RBI directions.

• Section 47A(1)(c) read with Section 46(4)(i) of the Banking Regulation Act, 1949