A day after the Reserve Bank of India (RBI) ordered the State Bank of Mauritius (SBM) India to stop all transactions under the Liberalized Remittance Scheme(LRS), fintech startup Niyo has become unanticipated collateral damage.
On January 23, the RBI ordered SBM Bank India to cease all linked transactions pending further orders, citing serious supervisory concerns. Reports state that neobank Niyo, which operates the “Niyo Global Card” in partnership with SBM Bank, was directly impacted by the move. As questions regarding the condition of the travel debit card flooded its community page and the internet, Niyo provided its own set of explanations.
