Business

RBI gives a go ahead to merger plan , withdrawl cap no longer applicable to Laxmi Vilas Bank

The Fact News Service

November 25

The government made a provision for depositors to withdraw more than ₹ 25,000 with permission from the RBI for medical treatment, higher education and marriage expenses.

The government started the procedure of rescuing Lakshmi Vilas Bank (LVB) on Tuesday by placing it under a moratorium for one month, and capping withdrawals from its customers’ accounts at ₹ 25,000 a month. The move to freeze the bank accounts was in view of the Tamil Nadu-based private sector lender’s deteriorating financial health. The Reserve Bank of India (RBI) proposed a plan to merge Lakshmi Vilas Bank with DBS Bank India, a subsidiary of Singapore-based DBS Bank, due to failure to find a suitor for the troubled bank in the past.

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