Lakshmi Vilas Bank-DBS Bank India Merger Effective From Nov. 27: RBI
The RBI issued the statement within hours of the Cabinet clearing the Scheme of Amalgamation.
The Reserve Bank on Wednesday said the amalgamation of The Lakshmi Vilas Bank Ltd. with DBS Bank India will come into force from Nov. 27 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 Ltd. with DBS Bank India Ltd.
"The amalgamation will come into force on the Appointed date i.e. Nov. 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.
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The RBI had superseded the board of LVB on Nov. 17 following the imposition of a moratorium on the private sector lender.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.