SBM Bank India’s Fintech Partners In A Fix

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SBM Bank India, a wholly-owned subsidiary of State Bank of Mauritius, has blocked corporate credit cards of some of its fintech partners’ customers due to KYC issues. The bank, which has over 30 fintech partners in India, said it has decided to re-KYC some corporate credit card accounts to maintain compliance. SBM’s key fintech partners offering corporate credit cards, which have been impacted, are Karbon Card, Happay, EnKash Card, Kodo, RazorpayX, Open card, Velocity, and OneCard. The move comes after the Reserve Bank of India directed SBM Bank to stop all transactions under the Liberalised Remittance Scheme from January 23, 2023, until further directions due to supervisory concerns.

Kodo Pay is a payment solution offered by Kodo, which allows its clients to make vendor payments and employee reimbursements using the platform. It is important to note that bank transfers, UPI and QR payments are not affected by this and will continue to be fully operational. In addition, clients can use their personal credit cards to make payments and get the amount reimbursed from Kodo once the credit card is operational. This can be a convenient way for clients to manage their expenses and simplify their payment processes.

The frequency of KYC updation varies based on the risk categorization of the customers. High-risk customers such as politically exposed persons, non-resident Indians, and those with suspicious transactions need to update their KYC details at least once every two years. Medium-risk customers such as small traders, farmers, and self-help groups need to update their KYC details once every eight years. Low-risk customers such as salaried individuals and those with stable income sources need to update their KYC details once every ten years. It’s important to note that if there are any changes in the customer’s profile such as change in address, contact details, income, or occupation, then the KYC details need to be updated immediately, regardless of the risk category.