The Reserve Bank of India's order could be the first step in cancelling the bank's licence and follows years of non-compliance with central bank rules

The system has already been used by Russia following the imposition of sanctions on Moscow over the Ukraine war

Banks have linked their floating home loan rate to the repo rate of the Reserve Bank of India, which surprised markets on Wednesday by raising rates to contain inflation

The monetary policy committee held the lending rate, or the repo rate, at 4% as governor Shaktikanta Das said the panel also voted to maintain an "accommodative" stance