All the branches of the Lakshmi Vilas Bank (LVB) will function as branches of DBS Bank India with effect from November 27, the RBI said in a release.
This is after Cabinet cleared scheme for the amalgamation of the LVB with DBS Bank India.
Customers, including depositors of LVB, will be able to operate their accounts as customers of DBS Bank India with effect from November 27, 2020, the RBI said.
Consequently, the moratorium on the Lakshmi Vilas Bank will cease to be operative from that date. DBS Bank India is making necessary arrangements to ensure that service, as usual, is provided to the customers of the LVB, the RBI said.
There is no change in the equity write-off clause mentioned in the earlier draft scheme of amalgamation according to which the entire paid-up share capital of LVB would be written off post the transaction.
The RBI had invited suggestions and objections on the draft scheme of amalgamation after placing LVB under a moratorium on November 17.
The government put the bank under a one-month moratorium while the RBI announced an amalgamation scheme with DBS last week after the financial situation of the ban worsened.LVB was in talks with Clix Capital for a possible merger. But, this deal didn’t get the RBI clearance.