Central government places curbs on Lakshmi Vilas Bank

Mumbai: The central government has placed private-sector lender, Lakshmi Vilas Bank (LVB), under a moratorium and has restricted withdrawals of more than Rs 25,000, as per a finance ministry statement on Tuesday.

The apex bank, Reserve Bank of India (RBI) has announced a draft scheme of amalgamation.The RBI has placed in public domain a draft scheme of amalgamation of The Lakshmi Vilas Bank (LVB) with DBS Bank India (DBIL), a banking company incorporated in India under Companies Act, 2013, and having its Registered Office at New Delhi. The move is being termed in the financial world as the fastest resolution of a failed bank.

DBIL is a wholly owned subsidiary of DBS Bank, Singapore (DBS), which in turn is a subsidiary of Asia's leading financial services group, DBS Group Holdings Limited and has the advantage of a strong parentage. It has been issued a banking license to operate as banking company under Section 22 (1) of the B R Act, on October 4, 2018.