Mumbai, November 25: The moratorium imposed on Lakshmi Vilas Bank (LVB) by the Reserve Bank of India (RBI) will be lifted on November 26. Consequently, the restriction on withdrawals by Lakshmi Vilas Bank depositors will also end on November 26. From November 27 onwards, depositors will be able to withdraw money from their accounts. The RBI had capped the withdrawal limit at monthly Rs 25,000 per account.
"Customers, including depositors of the Lakshmi Vilas Bank Ltd. will be able to operate their accounts as customers of DBS Bank India Ltd. with effect from November 27, 2020," the RBI said. All the branches of the Lakshmi Vilas Bank will function as branches of DBS Bank India with effect from November 27. "DBS Bank India is making necessary arrangements to ensure that service, as usual, is provided to the customers of the Lakshmi Vilas Bank," RBI added. Stimulus 3.0: Existing Emergency Credit Line Guarantee Scheme Extended Till March 31 2021, Says FM Nirmala Sitharaman.
RBI to Lift Moratorium Imposed on Lakshmi Vilas Bank:
The Lakshmi Vilas Bank Ltd. branches to operate as DBS Bank India Ltd. branches from November 27, 2020https://t.co/TLfSfhvXOm
— ReserveBankOfIndia (@RBI) November 25, 2020
Earlier today, the Union Cabinet approved the amalgamation of Lakshmi Vilas Bank with DBS Bank India, a subsidiary of DBS Bank, Singapore. The Centre notified in the official gazette that the Lakshmi Vilas Bank Limited (Amalgamation with DBS Bank India Limited) Scheme, 2020 will come into force on November 27, the LVB will cease to exist and be amalgamated with DBS Bank India.
"On and from the appointed date, the entire amount of the paid-up share capital and reserves and surplus, including the balances in the shares or securities premium account of the transferor bank, shall stand written off," the government notified.
(The above story first appeared on LatestLY on Nov 25, 2020 07:12 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).