Cabinet approves RBI scheme aimed at minimizing restrictions on withdrawal faced by depositors
GN Bureau | November 25, 2020
The scheme of amalgamation of Lakshmi Vilas Bank Limited (LVB) with DBS Bank India Limited (DBIL) has been approved by the union cabinet on Wednesday.
On November 17, 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 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 In parallel, RBI, in consultation with government, superseded the board of directors of LVB and appointed an administrator to protect the depositors’ interest.
After inviting suggestions and objections from the public and stakeholders, RBI prepared and provided a scheme for the bank’s amalgamation for the government’s sanction, well in advance of end of the period of moratorium so that restrictions on withdrawal faced by the depositors are minimised. With the approval of the scheme, LVB will be amalgamated with DBIL from the appointed date, and with this there will no further restrictions on the depositors regarding withdrawal of their deposits, an official release said.
DBIL is a banking company licenced by RBI and operating in India through wholly owned subsidiary model, DBIL has a strong balance-sheet, with strong capital support and it has the advantage of a strong parentage of DBS, a leading financial services group in Asia, with presence in 18 markets and headquartered and listed in Singapore. The combined balance-sheet of DBIL would remain healthy even after amalgamation and its branches would increase to 600.
The speedy amalgamation and resolution of the stress in LVB is in line with Government's commitment to a clean banking system while protecting the interests of depositors and the public as well as the financial system.
Atal Innovation Mission, NITI Aayog and All India Council for Technical Education (AICTE), and Ministry of Education’s Innovation Cell has announced their strategic collaboration which aims to empower Atal Tinkering Lab school (ATLs) students for world-class future-ready
Union Ministry of Agriculture and Microsoft India has inked a Memorandum of Understanding (MoU) for a pilot project in 100 villages of six states to develop farmer interface for smart and well-organized agriculture, including post-harvest management and distribution. The pilot
Ajay Prakash Sawhney, Secretary Ministry of Electronics & Information Technology (MeitY) & Chairman NIXI has inaugurated three initiatives of the National Internet Exchange of India (NIXI). With this launch, NIXI has announced to play a supporting role for the IPv6 aw
The Second Wave in India seems unstoppable. The number of daily new cases crossed the 2,00,000 figure on Thursday morning, which is the highest ever anywhere in the world. Most of the burden – 81 percent cases – is from ten states with Maharashtra continuing to lead the tally. The national capi
The government has reviewed the issue of availability of Remdesivir Drug and has decided to increase the production and decrease the price of the drug. The government has also issued a ban on its export. Remdesivir is the first drug approved by the FDA for treating the SAR
Union Minister for Communication & IT and Law & Justice Ravi Shankar Prasad launched the Online Grievance Management Portal of National Commission for Scheduled Castes (NCSC) in the presence of Minister of State for Social Justice & Empowerment Shri Rattan Lala Kata