The Reserve Bank of India on Wednesday informed that Lakshmi Vilas Bank and DBS Bank India merger will be successful from November 27.
All the branches of the Lakshmi Vilas Bank Ltd. will function as branches of DBS Bank India Ltd. with impact from November 27.
Customers, which includes depositors of the Lakshmi Vilas Bank Ltd., will be capable to operate their accounts as shoppers of DBS Bank India Ltd. Consequently the moratorium on the Lakshmi Vilas Bank Ltd. will cease to be operative from that date.
Now, DBS Bank India Ltd. is producing needed arrangements to make certain that service, as usual, is supplied to the shoppers of the Lakshmi Vilas Bank Ltd.
Earlier, LVB was placed below moratorium till December 16 with the RBI putting a withdrawal cap of Rs 25,000 on depositors for the duration of this period. This limit will apply to a lot more than a single account maintained by the depositor.
However, depositors are permitted to withdraw a lot more than Rs 25,000 with permission from the RBI for purposes such as healthcare remedy, payment of greater education and marriage expenditures.
The RBI was left with tiny area to manoeuvre, offered the erosion of the bank’s net worth – which has been in a steady decline more than the final 3 years – absence of any viable strategic strategy, declining advances and mounting non-performing assets.