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RBI proposes merger of Lakshmi Vilas Bank with DBS Bank India

Minutes after placing beleaguered Lakshmi Vilas Bank (LVB) under moratorium and superseding its Board of Directors, the Reserve Bank of India (RBI) on Tuesday announced a draft scheme to merge the ailing lender with DBS Bank India Ltd (DBIL). RBI has placed the Tamil Nadu-based LVB under moratorium for 30 days that would end on December 16, 2020, according to statements from the regulator and the government on Tuesday. As part of the moratorium, the regulator has capped deposit withdrawals by customers to Rs 25,000. Borrowers can withdraw above Rs 25,000 only for unforeseen expenses like medical treatment, education etc.

News source ~ DC