How good and safe is SBM bank?

[V G]

SBM bank is offering really good FD / RD interest rates. I am planning to put some funds (more than 5 lacs) in SBM bank. Is it safe bank? If we compare this bank with RBL and Yes in terms of safety, where will it stand?
It is neither cooperative bank nor small finance bank. It is mainstream bank. My views are it is as safe as Yes bank or RBL bank at least. What are your views?

 

[saucy]

SBM is an international bank as per my understanding. So it should not be unsafe

However sbm bank requires you to open an account with 5L IP, and have a TRV>25L - might want to consider that.

Some alternatives (to keep net amount<5L pretty bank)
- DCB bank 8%
- bandhan Bank - 8%

 

[Tejo]

SBM bank is offering really good FD / RD interest rates. I am planning to put some funds (more than 5 lacs) in SBM bank. Is it safe bank? If we compare this bank with RBL and Yes in terms of safety, where will it stand?
It is neither cooperative bank nor small finance bank. It is mainstream bank. My views are it is as safe as Yes bank or RBL bank at least. What are your views?

Fintechs likes the SBM india Bank only.

Like one card, slice card, etc

I advise to choose other banks if you funding more than 5lac.

If you keep those funds in other private banks you could avail premium banking experience + pre-approved offers.

I hold an ac with them, not using due their server issues.

 

[saucy]

SBM = State Bank of Mauritius 🦤

 

[Deleted member 11974]

Sbm is the state bank of Mauritius and also regulated by rbi.
So not an issue in case of safety

SBM bank is offering really good FD / RD interest rates. I am planning to put some funds (more than 5 lacs) in SBM bank. Is it safe bank? If we compare this bank with RBL and Yes in terms of safety, where will it stand?
It is neither cooperative bank nor small finance bank. It is mainstream bank. My views are it is as safe as Yes bank or RBL bank at least. What are your views?

 

[4uziaul]

SBM is an international bank as per my understanding. So it should not be unsafe

However sbm bank requires you to open an account with 5L IP, and have a TRV>25L - might want to consider that.

Some alternatives (to keep net amount<5L pretty bank)
- DCB bank 8%
- bandhan Bank - 6%

Assuming you are referring to FD rates, the current rate for Bandhan Bank is 8%. Just a minor correction. 👍

 

[Heehaahee]

SBM bank is offering really good FD / RD interest rates. I am planning to put some funds (more than 5 lacs) in SBM bank. Is it safe bank? If we compare this bank with RBL and Yes in terms of safety, where will it stand?
It is neither cooperative bank nor small finance bank. It is mainstream bank. My views are it is as safe as Yes bank or RBL bank at least. What are your views?

As safe as all other banks

 

[Astraea]

It's one worst foreign bank I have seen in India. I closed the account way back in jan 2022 while unknowingly opened account with indmoney app. Almost 6 months to and for mails they closed my account. Better you choose some other bank or P2P like Mobikiwik, 12%club etc they provide 12% per annum

 

[V G]

I am referring to RD of 3 years @ 8.40% p.a. This rate is applicable for today only. It is way too high.

 

[V G]

It's one worst foreign bank I have seen in India. I closed the account way back in jan 2022 while unknowingly opened account with indmoney app. Almost 6 months to and for mails they closed my account. Better you choose some other bank or P2P like Mobikiwik, 12%club etc they provide 12% per annum

I was having an account with them via hop money. Did not face any issue in closing account online.

 

[V G]

SBM is an international bank as per my understanding. So it should not be unsafe

However sbm bank requires you to open an account with 5L IP, and have a TRV>25L - might want to consider that.

Some alternatives (to keep net amount<5L pretty bank)
- DCB bank 8%
- bandhan Bank - 6%

Right now I have two SBM bank account with them. Zero balance Niyo Global and Indmoney. I checked with customer care, I can do RD against any account. So, I think TRV or minimum balance is not an issue. Rate is also 8.40%.

 

[saucy]

Yes, my bad. Thanks for correcting
Wrote savings interest instead

Assuming you are referring to FD rates, the current rate for Bandhan Bank is 8%. Just a minor correction. 👍

 

[gautamcool]

SBM bank is offering really good FD / RD interest rates. I am planning to put some funds (more than 5 lacs) in SBM bank. Is it safe bank? If we compare this bank with RBL and Yes in terms of safety, where will it stand?
It is neither cooperative bank nor small finance bank. It is mainstream bank. My views are it is as safe as Yes bank or RBL bank at least. What are your views?

They majorly provide banking services to startups in India


And RBI have penalised them, banned their cards, services in the 6 months due to various issues
In this landscape it might not be advisable to invest a lump sum with them

SBM Bank India Blocks Fintech Partnered Credit Cards Following RBI Directive

SBM Bank India, a subsidiary of State Bank of Mauritius, has stopped all commercial credit cards that it offers with its partnered fintech companies, following a directive from the Reserve Bank of India (RBI) to update the 'know your customer' (KYC) details. The block was implemented from 31...

startup.outlookindia.com

RBI directs SBM Bank (India) to stop all transactions under Liberalised Remittance Scheme

The RBI said the action is based on certain material supervisory concerns observed in the bank

www.thehindubusinessline.com

 

[Chaitanya-a]

If you're opening account in SBM, then be ready for frequent UPI outages. They have one of the worst payment infrastructure. Payment can get stuck for so long. Even RBI has penalised them and didn't revoke the restrictions because of zero improvement. Even SFBs & RBL is better than them.

 

[V G]

They majorly provide banking services to startups in India

View attachment 21421
And RBI have penalised them, banned their cards, services in the 6 months due to various issues
In this landscape it might not be advisable to invest a lump sum with them

SBM Bank India Blocks Fintech Partnered Credit Cards Following RBI Directive

SBM Bank India, a subsidiary of State Bank of Mauritius, has stopped all commercial credit cards that it offers with its partnered fintech companies, following a directive from the Reserve Bank of India (RBI) to update the 'know your customer' (KYC) details. The block was implemented from 31...

startup.outlookindia.com

RBI directs SBM Bank (India) to stop all transactions under Liberalised Remittance Scheme

The RBI said the action is based on certain material supervisory concerns observed in the bank

www.thehindubusinessline.com

If you're opening account in SBM, then be ready for frequent UPI outages. They have one of the worst payment infrastructure. Payment can get stuck for so long. Even RBI has penalised them and didn't revoke the restrictions because of zero improvement. Even SFBs & RBL is better than them.

You both are correct when it comes to penalty and restrictions.
I have also been using Niyo global account for their UPI for quite sometime. However, I have not been using UPI very much. Hardly two or three transactions in a month. I did not face any issue.
My objective here is different. I just need to open an RD. I will be hardly using their any other service. So, I just need to ensure that my money is safe (not at risk as it was in the case of Yes Bank) and I can get my money easily online after maturity. Regarding maturity, there is no issue as I have used their Term deposit services earlier also. It is all online.
I am only worried about safety of money beyond RBI insurance. As there is restriction on foreign remittances on SBM, does it mean something is wrong with SBM when it comes to public funds or is it just related to issue with remittance procedures?

 

[COSMOCRAT]

It's one worst foreign bank I have seen in India. I closed the account way back in jan 2022 while unknowingly opened account with indmoney app. Almost 6 months to and for mails they closed my account.

Same thing. Their customer care is incredibly slow, took 4 months for closing the account, sometimes they didn't even reply. Even if it's regulated by RBI, not worth it for money to get indefinitely get stuck if something were to happen.

 

[Chaitanya-a]

You both are correct when it comes to penalty and restrictions.
I have also been using Niyo global account for their UPI for quite sometime. However, I have not been using UPI very much. Hardly two or three transactions in a month. I did not face any issue.
My objective here is different. I just need to open an RD. I will be hardly using their any other service. So, I just need to ensure that my money is safe (not at risk as it was in the case of Yes Bank) and I can get my money easily online after maturity. Regarding maturity, there is no issue as I have used their Term deposit services earlier also. It is all online.
I am only worried about safety of money beyond RBI insurance. As there is restriction on foreign remittances on SBM, does it mean something is wrong with SBM when it comes to public funds or is it just related to issue with remittance procedures?

That's what I'm saying. If the bank is not keeping up with RBI guidelines, then how can it be considered safe for our money. Keep your money in trusted banks.

This is I'm saying for huge amount. If you're planning to just experiment with small amount, then its good to go with.