NEW DELHI :
Amalgamation will come into force from Nov 27
THE Government on Wednesday approved merger of crisis-ridden Lakshmi Vilas Bank (LVB) with DBS Bank India Ltd (DBIL) and removed restrictions on withdrawal of deposits by depositors. The Union Cabinet has approved the merger of the LVB with DBS Bank India Limited, Union Minister Prakash Javdekar told reporters, adding that the decision will provide comfort to 20 lakh depositors and protect the services of 4,000 employees.
“Cabinet approves Scheme of Amalgamation of Lakshmi Vilas Bank with DBS Bank India Limited; with this there will be no further restrictions on the depositors regarding withdrawal of their deposits,” the official spokesperson said in a tweet. The Minister said that those responsible for deteriorating financial health of the LVB would be penalised.
Meanwhile, the RBI on Wednesday said the amalgamation of Lakshmi Vilas Bank with DBS Bank India will come into force from November 27 and the moratorium imposed on the crisis-ridden lender will be removed on that day. The Government had earlier on November 17 on the advice of the RBI imposed a 30-day moratorium on the crisis-ridden LVB restricting cash withdrawal at Rs 25,000 per depositor.