The Reserve Bank of India (RBI) lifted restrictions on transactions under the Liberalised Remittance Scheme (LRS) of State Bank of Mauritius (SBM) India last week.
This decision follows a thorough review of corrective measures taken by SBM India, to whom the Indian regulator had asked to temporarily halt these transactions in January 2023.
The LRS is a program that allows individuals in India, including minors, to freely transfer up to $250,000 annually for financial transactions such as current account operations or capital transfers, including buying stocks in foreign markets.
The program was introduced by RBI in 2004 to enable Indian residents to conduct foreign currency transactions more easily.
SBM India began its operations as an Indian domestic bank on December 1, 2018, after receiving a banking license from RBI through the Wholly Owned Subsidiary Program, which only two foreign banks have benefited from.
SBM India reaffirms its commitment to providing innovative digital solutions to its customers, and the lifting of these restrictions allows the bank to fully resume its operations under the LRS.
SBM India continues to work closely with regulatory authorities and submit regular reports on LRS transactions in strict compliance with the regulatory framework prescribed by RBI and other Indian financial market regulators.
This decision reflects the effectiveness of SBM India’s strategy and its ability to adapt to regulatory and prudential challenges while maintaining high standards of customer service.
SBM Holdings Ltd, the Mauritius-based shareholder listed on the Stock Exchange of Mauritius, remains committed to being a leader in the banking sector and offering tailored financial solutions to its customers in Mauritius and the countries where it operates.
Source: Le Mauricien
