Effective from 27 November 2020, Lakshmi Vilas Bank (LVB) has been amalgamated with DBS Bank India Limited (DBIL). The moratorium on LVB has been lifted and banking services are now back to normal through Lakshmi Vilas Bank’s branches and ATM network. The amalgamation provides stability to LVB and ensures that depositors’ money is safe with the bank.
The amalgamation was taken place after the Reserve Bank of India (RBI) had imposed a moratorium from November 17 on cash strapped LVB. However, shortly after announcing a one-month moratorium for LVB, the central bank unveiled a move to merge LVB with DBS Bank India.
As the moratorium is lifted, what happens to account holders, depositors and loan borrowers of LVB? Here is what LVB’s customers must take note of.
Will DBS Bank change the applicable interest rate on my LVB deposit?
There will be no change to your LVB deposit rates at this point. Your existing fixed deposit(s) with LVB (pre-merger) will continue at the interest rates at which they were originally booked, till their maturity.
The interest rates on savings bank accounts, too, will be governed by the rates offered by LVB (pre-merger) till further notice.
Also, any new deposits being booked now will be at rates which were earlier published by LVB. The rates may be revised, which will be announced later.
I have a home loan account with LVB at an attractive interest rate compared to what DBS Bank India offers. Is my rate protected? Also, can I operate my loan accounts as usual?
At present, there is no change to the interest rate on your home loan from LVB. If there are changes in the interest rates after integration is completed, those will be communicated to the borrower.
Until then, you can continue to operate your existing loan accounts as usual until further notice from the bank.
I have an account with LVB. Will I now be able to use DBS Bank’s facilities?
Right now, you can resume banking only through all of LVB’s facilities and network as earlier. You can begin using the DBS network only after the integration process is complete. This will be communicated by the bank in future to all the LVB customers.
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After this amalgamation, does my account number or my branch IFSC code change? Also, do I need a new cheque book and debit card for transactions?
At present there is no change to your account number or to the branch IFSC codes. You can continue to access your LVB account through internet / mobile banking. You can even continue using your existing LVB cheque book and debit card for regular transactions.
Will there be a charge if I use my LVB debit card to withdraw cash at DBS Bank’s ATM?
Currently, transactions at DBS Bank’s ATMs will be charged Rs 18 per financial transaction and Rs 6 per non-financial transaction, if you exceed three free transactions per month in other banks’ ATMs if they are located at six metros (Mumbai, New Delhi, Bengaluru, Hyderabad, Chennai and Kolkata). The bank allows five free transactions per month in other bank ATMs, if those are located outside the metros.
I already have banking relationships with both DBS and LVB. What I should do?
In the near term, your relationship with both DBS and LVB will remain unchanged. You will be notified by the bank after the integration is complete and if there are changes to your existing banking arrangement with LVB.