Categories: India

Cabinet approves merger of Lakshmi Vilas Bank, DBS Bank India

The Cabinet today approved the amalgamation of the Lakshmi Vilas Bank (LVB) with DBS Bank India, a subsidiary of DBS Bank, Singapore.

“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 a 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 In parallel, RBI, in consultation with Government, superseded the Board of Directors of LVB and appointed an Administrator to protect the depositors' interest,” an official press release issued by the Cabinet said.

Briefing the media about the cabinet decision on the matter Minister Prakash Javadekar said liability will be fixed for wrongdoings in LVB on the board members that has been removed.

"This is one of the efforts of cleaning up the banking sector," Javadekar said.

He said the interests of LVB's 20 lakh depositors, Rs.20,000 crore deposits and 4,000 employees has been secured..

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