RBI places Lakshmi Vilas Bank underneath moratorium

The Reserve Bank of India (RBI) has positioned cash-strapped Lakshmi Vilas Bank (LVB) underneath a moratorium for a interval of 1 month and restricted withdrawals at Rs 25,000 for depositors, owing to a critical deterioration within the lender’s monetary place. The central financial institution additionally outmoded the board of administrators of LVB for a interval of 30 days owing to a critical deterioration within the monetary place of the financial institution. The transfer was introduced by means of an order by the Ministry of Finance.

Reserve Bank has come to the conclusion that within the absence of a reputable revival plan, with a view to defending depositors’ curiosity and within the curiosity of monetary and banking stability, there isn’t a different however to use to the Central Government for imposing a moratorium underneath part 45 of the Banking Regulation Act, 1949.

Lakshmi Vilas Bank to be merged with DBS:

  • The RBI has additionally drafted a scheme of amalgamation for LVB with DBS Bank India Ltd. and goals to finish the merger course of earlier than the moratorium interval ends.
  • DBS Bank India Ltd (DBIL) is a wholly-owned subsidiary of DBS Bank Ltd, Singapore (“DBS”), which in flip is a subsidiary of Asia’s main monetary providers group, DBS Group Holdings Limited.
  • The financial institution invited strategies and objections, if any, from members, depositors and different collectors of transferor financial institution (LVB) and transferee financial institution (DBIL), on the draft scheme.
  • DBIL will herald further capital of 2,500 crore upfront, to assist credit score development of the merged entity.

Important takeaways for all aggressive exams:

  • Lakshmi Vilas Bank Headquarters: Chennai, Tamil Nadu.
  • Lakshmi Vilas Bank Founded: 1926.
  • Lakshmi Vilas Bank President: Avtar Singh Monga.

Thank you for visiting this wonderful educational site. Vist স্বর্ণশিক্ষা every day. Thank You.