Tue Oct 28 14:32:14 UTC 2025: Summary of the Text:

The State Bank of India (SBI) has capped monthly remittances for Indian expats in the Maldives at $150, severely impacting their ability to send money home. This action, attributed to a dollar shortage in the Maldives, forces many to rely on unregulated black markets with exploitative exchange rates. Despite the improving relations between India and the Maldives, this financial constraint is causing hardship. The Kerala government is aware of the issue and plans to escalate it to the Union government for bilateral talks to find a solution. Meanwhile, recruitment of Indian workers to the Maldives continues, despite high recruitment fees.

News Article:

SBI’s Remittance Cap Strangles Indian Expats in Maldives

THIRUVANANTHAPURAM, October 28, 2025 – Despite recent improvements in India-Maldives relations, a controversial decision by the State Bank of India (SBI) to drastically limit monthly remittances for Indian expatriates working in the island nation is causing widespread financial distress. The cap, now set at a meager $150 per month, has left thousands of teachers, healthcare workers, and other professionals struggling to support their families back home.

SBI, the only Indian bank operating in the Maldives, has gradually reduced the remittance limit from unlimited amounts to the current restrictive level. According to Sumeena Sajeev, a teacher at GDh. Atoll School, this has been compounded by the suspension of card withdrawals and other international transactions.

“We are unable to access our hard-earned salaries securely,” Sajeev told The Hindu. “This has created a real financial crisis for many of us.”

The restriction has forced many expats to resort to unregulated black markets, where unscrupulous agents offer significantly lower exchange rates, capitalizing on their desperation. Anoop Antony, another teacher in the Maldives, highlighted that these agents are offering rates as low as ₹4.50 per Maldivian Rufiyaa (MVR), compared to the official rate of ₹5.70.

The crisis stems from a dollar shortage in the Maldives, prompting SBI to implement the remittance cap to bolster the nation’s foreign exchange reserves. Those paid in USD don’t face this issue.

“We have raised the issue with SBI authorities in Male, but they claim their hands are tied,” Antony added.

Ajith Kolassery, CEO of NoRKA-Roots, the Kerala government’s agency for non-resident Keralites affairs, confirmed that they have received numerous complaints and will appeal to the Indian Ministry of External Affairs to intervene through bilateral discussions.

“We will bring this to the attention of the Union government. We are hopeful that the Ministry of External Affairs can resolve this through talks,” said Mr. Kolassery.

The situation is further complicated by the continued recruitment of Indian workers to the Maldives by recruitment agencies, despite the existing financial hardships. Agencies charge high recruitment fees.

While relations between India and the Maldives have improved after a period of strain in 2023, this new financial constraint threatens to undermine progress and create further resentment among the Indian diaspora. The issue underscores the delicate balance between diplomatic ties and the economic well-being of Indian citizens working abroad.

Read More