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Niyo users bear the brunt, as SBM Bank India comes under RBI radar
January 27, 2023
A day after the Reserve Bank of India (RBI) directed the State Bank of Mauritius (SBM) India to stop all transactions under the Liberalised Remittance Scheme (LRS), fintech startup Niyo has emerged as an unlikely collateral damage.
In an order dated January 23, RBI directed SBM Bank India to stop all related transactions till further orders citing material supervisory concerns. The move is said to have directly affected neobank Niyo which operates the ‘Niyo Global Card’ in partnership with SBM Bank.
The neobank conceded that international transactions on its debit card product were temporarily paused, adding that it was working with the partner bank to resolve the issue.
In the meanwhile, the neobank has launched ‘Zero forex secured credit cards’ to alleviate the concerns of the customers.
“However, we have made Zero forex secured credit cards available to you to assist with this temporary situation. You can avail credit card immediately and start using virtual card on your app for all International ECOM transactions… You can order a physical Secure Credit Card and the same would be delivered free of cost to your registered communication address within 7-10 days. The card will work seamlessly at all International ATMs, POS, Ecommerce,” said Niyo.
Inc42 tried to reach out to Niyo for a statement. The story will be updated to include the comment as and when it is received.
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