SBM Bank India’s Fintech Partners In A Fix; What’s Brewing?

SBM Bank India’s Fintech Partners In A Fix; What’s Brewing?

SUMMARY

The bank India has 1 Mn+ credit card accounts and only a few thousand of them (users) have been sent a notification to update their KYC details, said an SBM Bank India spokesperson

This came almost a month after the RBI directed SBM Bank (India) Ltd to stop, with immediate effect, all transactions under the Liberalised Remittance Scheme (LRS) 

The SBM Bank India also stopped issuing new corporate credit cards earlier this year and did not share any update with fintech partners on the same

SBM Bank India, the wholly-owned subsidiary of foreign lender State Bank of Mauritius (SBM), has blocked (with effect from March 31, 2023) corporate credit cards issued to some of the customers of its fintech partners, due to KYC issues.“There is no notification regarding the consumer credit card holders. Since only the corporate credit cards’ KYC needs to be updated, there has not been much impact. As soon as the KYC is updated, the cards will get unblocked,” the founder added.“You can contact the respective fintech support to understand the timelines for unblocking the card,” the SBM executive said.“We don’t have any clear details here,” the executive said, after beating around the bush for more than 10 mins.“HI,

In a statement shared with Inc42, SBM India said, “At SBM Bank India, meeting regulatory requirements is a top priority. This includes a sustained focus on conducting periodic checks and monitoring at the client level, during onboarding and throughout their lifecycle. The Bank has taken decisions for re-KYC on some corporate credit card accounts in line with our commitment to maintaining the most compliant environment.”Unfortunately, there are no updates at the moment. We are actively following up with our partner bank to expedite the process. They are currently undergoing a significant CMS migration, which has affected all of their card programs.

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