Lakshmi Vilas Bank to start withdrawals on Friday
New Delhi, Nov 25: Lakshmi Vilas Bank will restart withdrawals on Friday. The bank will operate branches as DBS Bank India.
Earlier, the Union Cabinet approved the Scheme of Amalgamation of Lakshmi Vilas Bank with DBS Bank India Limited.
The Reserve Bank of India had on November 17 proposed the merger of the 94 year old lender with the Indian arm of Singapore's DBS Bank. DBS will infuse fresh capital of Rs 2,500 crore into LVB.
The RBI had placed the bank under one month moratorium, superseded its board and capped withdrawals at Rs 25,000 per depositor. With the merger, there will no further restrictions on the depositors regarding the withdrawal of their deposit, Union Minister, Prakash Javadekar said after the Cabinet briefing.
Further the Cabinet approved Rs 6,000 crore equity infusion by govt in NIIF Debt Platform sponsored by National Investment and Infrastructure Fund.