Indian bank limits monthly remittance for some expats: Who’s affected, who’s not?

Dubai: Several reports that an Indian bank is capping monthly remittances have sparked concern among NRIs worldwide. But do these limits affect Indians in the UAE? If not, who’s impacted — and why?

The State Bank of India (SBI) has imposed a monthly remittance cap of $150 (around ₹13,200) for Indian nationals working in the Maldives, citing a severe foreign exchange shortage in the island nation. The new limit takes effect from October 25.

SBI clarified that the restriction applies only to Maldivian Rufiyaa (MVR) accounts. Customers holding US dollar accounts can continue remitting as usual — but since most local workers are paid in Rufiyaa, the rule affects nearly all Indian employees outside the tourism sector.

For Indian expats in the UAE, Saudi Arabia, Oman, or Qatar, nothing changes. Money transfers through banks, exchange houses, and digital apps remain fully operational, with no limits or disruptions announced by Indian banks.

The Maldives, with an economy worth just $6.5 billion, has been battling a dollar shortage as it tries to rebuild its foreign reserves and meet mounting debt obligations.

According to World Bank estimates, the country will need $1.07 billion in reserves by 2026 to sustain repayments. The Maldives Monetary Authority (MMA) last year ordered local banks to deposit 90% of tourism earnings in USD with the central bank — a sharp rise from 60%.

That decision, combined with high import costs for essentials like food and fuel, has left commercial banks short of dollars to process outbound transfers.

In a notice to customers, SBI said: “As the inflow of foreign exchange to SBI remains very low, we are unable to sustain the current salary remittance limits. The MVR-INR remittance limit is being temporarily reduced to USD 150 per account.”

The bank also suspended international ATM and card use for MVR account holders, promising to review the restrictions “periodically” and restore normal limits “as soon as the foreign exchange situation improves.”

The black-market exchange rate for the Maldivian Rufiyaa has already climbed beyond MVR 20 per USD, reflecting how tight the situation has become.

The restrictions are expected to impact thousands of Indian nationals working in the Maldives, many of whom send money home monthly to support families.

Bottom line? The SBI limit is local, temporary, and specific to the Maldives. If you’re an Indian expat in the UAE — or anywhere else — your remittances are safe and unaffected.