RBI halts LRS deals at State Bank of Mauritius

- Vested Finance paused processing fresh deposits via Vested Direct

- Vested users can use their existing bank accounts to deposit USD in Vested brokerage accounts - It's working on other easy deposit options via Vested Direct

Mumbai: In its recent order, the Reserve Bank of India (RBI) has instructed the State Bank of Mauritius (SBM India) to halt all transactions under the Liberalized Remittance Scheme (LRS) until further notice. It may be mentioned here that Vested Finance's cost-effective instant funding product Vested Direct is powered by SBM India.

As a result, Vested Finance will pause processing fresh deposits via Vested Direct. In the meantime, Vested users can use their existing bank accounts to deposit USD into their Vested brokerage accounts. Vested Finance team is working towards enabling other easy deposit

options via Vested Direct.

Talking to Bizz Buzz, Viram Shah, Co-founder and CEO, Vested Finance, says: "Vested Direct, our unique, low-cost digital fund transfer solution is supported by SBM India. With the help of Vested Direct, we were able to lower the overall cost of depositing funds to investors' US brokerage accounts and improve the user experience for investors by providing instant funding.

However, the introduction of this ruling means we will not be processing any new deposits using Vested Direct in the interim".

Our banking partners believe that it is a matter of time before they can start processing remittances again and that all remittances made through our processes till now have been compliant with the appropriate regulations. We are working hard to provide another low-cost digital deposit solution on the Vested platform, he added

However, this development does not imply that the platform's fund transfer has been halted. Investors will be able to transfer funds as usual using their existing non-SBM bank accounts. Also, investors can continue to invest in the US market through Vested.

Also, there is no impact on investors' US stock holdings. They are held securely in their US brokerage account with DriveWealth.

The recent ban imposed by the RBI on LRS transactions has presented a challenge for Vested, but it also presents an opportunity for the company to innovate and find a new solution.

Vested is already working on an alternate solution to provide low-cost and easy funds transfer for international investments.