RBI Latest News: Guidelines are issued by the Reserve Bank of India (RBI) for all the government, private and cooperative banks of the country. The Reserve Bank has now banned bank transactions with immediate effect, that is, you will not be able to do transactions in any way. Let’s know the complete details about it.
Guidelines are issued by the Reserve Bank of India (RBI) for all including government, private and cooperative banks of the country.
If you have also opened an account in any bank of the country, then definitely know the new rules of RBI. The Reserve Bank has now banned bank transactions with immediate effect, which means you will not be able to do any kind of transaction.
Why has the ban been imposed?
The Reserve Bank of India has decided to ban SBM Bank (India) Limited under the Liberalized Remittance Scheme (LRS) with immediate effect. RBI has told that this ban will remain in force till further notice.
Issued press release
Under Section 35A and 36(1)(a) of the Banking Regulation Act, 1949, RBI has directed SBM Bank to stop LRS transactions, which the bank is required to comply with. Along with this, RBI has also issued a press release.
This step was taken after a lot of worries
The Reserve Bank has said in a press release that under the Banking Act, the RBI, using its powers, has decided to stop the transactions of SBM Bank. This action has been taken after a lot of concerns.
It is a financial services group
Please tell that SBM Bank is a subsidiary of Mauritius-based SBM Holdings. SBM Group is a financial services group that offers services including deposits, loans, finance for business and cards, among others.
3 crore has been fined
SBM Bank started banking facilities on 1st December 2018 after taking license from RBI. At present there are total 11 branches across the country. In the year 2019, a fine of Rs 3 crore was also imposed on the bank for non-compliance of regulatory norms.