Laxmi Vilas Bank, DBIL merger effective from 27 Nov, says RBI after Cabinet nod
The moratorium imposed on the crisis-ridden lender will be removed on Friday and depositors of LVB will be able to operate their accounts as customers of DBS Bank India from that day, said the Central bank
Mumbai: The Reserve Bank on Wednesday said the amalgamation of Lakshmi Vilas Bank with DBS Bank India will come into force from 27 November and the moratorium imposed on the crisis-ridden lender will be removed on that day.
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).
"The amalgamation will come into force on the Appointed date i.e. 27 November, 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.
Depositors of LVB will be able to operate their accounts as customers of DBS Bank India with effect from Friday. "Consequently the moratorium on the Lakshmi Vilas Bank Ltd. will cease to be operative from that date," it said.
The RBI had superseded the board of LVB on 17 November following the imposition of a moratorium on the private sector lender.
DBS Bank India Ltd is making necessary arrangements to ensure that service, as usual, is provided to the customers of Lakshmi Vilas Bank, the RBI added.
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