With the government announcing the final scheme of amalgamation of Lakshmi Vilas Bank (LVB) and DBS India effective November 27, LVB will cease to exist from that date.
Here are a few important questions answered on the scheme.
What is the latest development?
The government has notified the final scheme of amalgamation between LVB and DBS. This means the merger is effective from Friday. Simultaneously, the RBI has said all branches of the bank will function as DBS branches.
What happens to LVB depositors?
LVB depositors can use DBS branches for all banking needs. Customers, including depositors of the LVB, will be able to operate their accounts as customers of DBS Bank India with effect from November 27, 2020, the RBI said.
What happens to the moratorium imposed on LVB Bank?
The moratorium will end on Friday and the Rs 25,000 withdrawal cap imposed for all creditors will go. DBS Bank India is making necessary arrangements to ensure that service, as usual, is provided to the customers of the LVB, the RBI said.
What was the original moratorium date?
The government had imposed the moratorium originally till December 16. But this has been withdrawn much earlier than expected.
What happens to LVB shareholders?Going by the final scheme, 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 LVB shares will be delisted from the exchanges from Friday.