The scheme of amalgamation of Lakshmi Vilas Bank (LVB) with DBS Bank India Limited got approval from the Union Cabinet, chaired by the Prime Minister, Shri Narendra Modi.
On 18th November 2020, the government on the advice of the Reserve Bank of India (RBI) placed LVB under a one-month moratorium and appointed T.N Manoharan as its administrator and Cash withdrawals were capped at Rs 25,000 per depositor.
RBI constituted a scheme for the bank’s amalgamation for the Government’s approval. Now, with the Government’s consent, LVB will be amalgamated with DBS from the appointed date, and restrictions regarding withdrawal of deposits will be removed.
Here is the official press release:
After Yes bank, Lakshmi Vilas bank under moratorium