Lakshmi Vilas Bank-DBIL merger to be effective from Nov 27
- The LVB-DBIL merger is to come into effect from November 27
- All LVB customers' accounts will be transferred to the DBS bank India Limited from that date
- The merger is the result of the LVB's taking over by RBI after the former suffered grave losses for 3 years straight
The cash-strapped Lakshmi Vilas Bank will be effectively merged with DBS Bank India Limited (DBIL) on November 27, and with it come out of the moratorium imposed on it last week, the Reserve Bank of India said on Wednesday.
The RBI issued the statement within hours of the Cabinet clearing the Scheme of Amalgamation of Lakshmi Vilas Bank Limited (LVB) with DBS Bank India Limited (DBIL), PTI reported.
"The amalgamation will come into force on the appointed date i.e. November 27, 2020. All the branches of the Lakshmi Vilas Bank Ltd. will function as branches of DBS Bank India Ltd. with effect from this date," the RBI said.
"Consequently the moratorium on the Lakshmi Vilas Bank Ltd. will cease to be operative from that date," it said.
The central bank had superseded the board of LVB on November 17 taking view of the bank’s financial frailty and depleting reserves. It had also put a moratorium on the bank capping the limit of cash withdrawals by customers to Rs 25,000.