According to the bank, the warning letter was issued on June 1, 2026, after it allowed an FPI to repatriate funds before the completion of the mandatory lock-in period under the Voluntary Retention Route (VRR). As a custodian, the bank’s action was found to be inconsistent with the provisions of the Reserve Bank of India Master Direction dated January 7, 2025, as well as the provisions of the SEBI (Foreign Portfolio Investors) Regulations, 2019.
