Cabinet approved Scheme of Amalgamation of Lakshmi Vilas Bank with DBS Bank India Limited

The Union Cabinet has given its approval to the Scheme of Amalgamation of Lakshmi Vilas Bank Limited (LVB) with DBS Bank India Limited (DBIL).

Daily Current Affairs Quiz 2020

Key-Points

On 17.11.2020, to protect depositors’ interest and in the interest of financial and banking stability, on RBI’s application under section 45 of the Banking Regulation Act, 1949, LVB had been under moratorium for a period of 30 days.

In parallel, RBI, in consultation with Government, superseded the Board of Directors of LVB and appointed an Administrator to protect the depositors’ interest.

RBI prepared and provided a scheme for the bank’s amalgamation. With the approval of the scheme, LVB will be amalgamated with DBIL from the appointed date, and with this there will no further restrictions on the depositors regarding withdrawal of their deposits.

DBIL is a banking company licenced by RBI and operating in India through wholly owned subsidiary model, DBIL has the advantage of a strong parentage of DBS, a leading financial services group in Asia and headquartered in Singapore.