Lakshmi Vilas Bank Lakshmi Vilas Bank to merge with DBS Bank, to become DBS Bank India from Nov 27
Mumbai/IBNS: The Reserve Bank of India (RBI) has notified that the crisis-stricken Lakshmi Vilas Bank (LVB) will be merged with the Indian arm of Singapore-based DBS Bank on Friday (Nov 27), after which all restrictions, including cap on withdrawal of Rs 25,000.
After the merger all the branches of LVB will function as branches of DBIL with effect from November 27, the RBI said in a statement.
"Customers, including depositors of the Lakshmi Vilas Bank Ltd will be able to operate their accounts as customers of DBS Bank India Ltd (DBIL) with effect from November 27, 2020. Consequently the moratorium on the Lakshmi Vilas Bank Ltd. Will cease to be operative from that date," it said.
"Consequently the moratorium on the Lakshmi Vilas Bank Ltd. Will cease to be operative from that date," it added.
On November 17, the Reserve Bank of India had put Tamil Nadu based Lakshmi Vilas Bank on moratorium for a month and restricted the withdrawals to Rs 25,000 during the period, the finance ministry said in a statement.
The Union Cabinet, chaired by the Prime Minister Narendra Modi, has given its approval to the Scheme of Amalgamation of Lakshmi Vilas Bank Limited (LVB) with DBS Bank India Limited (DBIL).
The gazette notification issued by the Department of Financial Services said all LVB shall continue in service with the same remuneration and the same terms and conditions of service as they were before the close of business on November 17, 2020.
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