All the branches of the Lakshmi Vilas Bank will function as branches of DBS Bank India.
The moratorium on Lakshmi Vilas Bank will be withdrawn on 27 November 2020 as the government currently sanctioned the scheme for the amalgamation of the Lakshmi Vilas Bank with DBS Bank India Ltd. All the branches of the Lakshmi Vilas Bank will function as branches of DBS Bank India with impact from this date, RBI mentioned. Customers, which includes depositors of the Lakshmi Vilas Bank, will be capable to operate their accounts as prospects of DBS Bank with impact from 27 November. The Reserve Bank additional mentioned that DBS Bank is producing needed arrangements to make sure that smooth service is offered to the prospects of the Lakshmi Vilas Bank.
The government had earlier, on the assistance of the RBI, imposed a 30-day moratorium on the crisis-ridden Lalskmi Vilas Bank, restricting money withdrawal at Rs 25,000 per depositor. Further, the Reserve Bank had superseded the board of the bank and appointed T N Manoharan, former non-executive chairman of Canara Bank, as an administrator of the bank for 30 days.
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While speaking to the media, Manoharan had assured that he is confident to attain a resolution properly prior to the moratorium gets more than on 16 December. He had added that the amalgamation with the DBS bank will ideal away bring Rs two,500 crores to the bank, which is intended not only for the bank’s sustainability but also to take it to the subsequent level.
Meanwhile, the moratorium imposed on the Lakshmi Vilas Bank had freaked out the bank prospects and they lined up to withdraw their tough-earned income from the bank. The depositors had withdrawn around Rs ten crores in a day. Manoharan had cautioned the branches to presume as if it is a demonetisation moment for the bank, given that there could be friction and panic amongst prospects due to the lack of right communication.