The banking regulator, on January 23, asked SBM Bank (India) to stop with immediate effect all transactions under the Liberalized Remittance Scheme (LRS) till further orders. “The bank has since initiated corrective actions and made submissions for relaxation of the restrictions,” the RBI said.
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, it said.
“The relaxation is up to March 15, 2023, or until further orders, whichever is earlier,” the RBI added.
An SBM Bank (India) spokesperson said in a statement the RBI has permitted the bank’s customers (KYC-compliant accounts) to use their debit cards for physical purchase at merchant outlet and ATM cash withdrawal overseas till March 15, 2023.