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‘Not Simply Another Community Bank’: Critics Sound Alarm Over New Indian Bank in Texas
The State Bank of India has announced it is opening a new branch in Frisco, Texas, with critics raising concerns about Indian workers sending remittances back to India with minimal fees.
The branch is expected to open in mid-September and will be located off Coit Road.
The Indian population in the Dallas-Fort Worth area is estimated at about 230,000, with many being in the U.S. on H-1B visas. The population increased by 20% from 2020 to 2024 as the federal government continued approving H-1B visas.
The bank’s website states that customers can send remittances—money foreign workers send back to their home countries—with zero transfer fees.
Online customers can send up to $50,000 per day, while mobile customers can send up to $25,000 per day, according to the bank’s website. There is no stated limit for remittances sent from a branch. The bank specializes in remittance services to India and Bangladesh.
Employees at the bank speak multiple languages, including English, Hindi, Punjabi, and other Indian languages.
State Bank of India is headquartered in Los Angeles and has multiple branches across California. The institution is also backed by the Federal Deposit Insurance Corporation, which insures deposits of up to $250,000 per depositor.
The new Frisco location has drawn criticism from those who say the services could be used to evade American laws.
According to an article by Ammon Blair, a senior fellow with the Texas Public Policy Foundation’s Secure & Sovereign Nation Initiative, the United States is losing at least $200 billion annually from remittances leaving the domestic economy and supporting foreign economies.
“Through the lens of gray-zone conflict, remittances are not neutral financial transfers. They function as an asymmetric economic weapon, weakening U.S. labor markets, eroding the rule of law, and stabilizing regimes that act contrary to American interests. In gray-zone conflict, the rule of law itself becomes contested terrain,” Blair wrote.
Blair also told the Daily Signal that the bank is bringing the remittance issue directly to Texas.
“This is not simply another community bank entering a growing suburb,” Blair said. “SBI California is a subsidiary of State Bank of India, which is controlled by the Indian government.”
Blair said India received an estimated $129 billion in remittances in 2024, but there is little information about whether the funds came from lawful earnings or how much was transferred through digital channels.
“That lack of visibility is the problem,” Blair said. “At scale, they move billions of dollars earned in the United States into foreign economies, supporting households, businesses, financial institutions, and governments abroad rather than recirculating in the communities where the income was generated.”
Blair also raised concerns around the zero-transfer fees SBIC is offering. He told the Daily Signal that Texas should require a “clear, upfront disclosure of the total transaction cost, including the exchange-rate spread.”
At the state level, Blair says Texas needs to address the issue through a “constitutionally sound approach.”
“Texas can focus instead on conduct occurring within the state: banking compliance, consumer protection, deceptive pricing, fraud, identity theft, unlawful employment, public-benefit theft, money laundering, tax evasion, and organized crime,” he said. “Texas law already gives the banking commissioner authority to examine an interstate branch maintained by an out-of-state state bank and respond when that branch violates applicable Texas law. “
“The Legislature should determine whether that authority is sufficient and whether additional reporting, examination, subpoena, referral, or enforcement powers are necessary,” he added.
At the federal level, Republican U.S. Rep. Keith Self of Texas told the Daily Signal that he filed legislation to address the issue by imposing a tax on foreign remittances.
“I am fighting to protect America’s financial system because foreign remittance schemes—including zero-fee transfers from banks like the State Bank of India—are being used to evade our laws and cheat American taxpayers,” Self said.
“That’s why I introduced the Foreign Remittance Accountability and Transparency Act (HR 5978), pushed to block illegal aliens from our banks (HR 8836), and am demanding we raise the excise tax on remittances sent abroad by foreign nationals to 50%. It’s time to end this exploitation and put American taxpayers first.”