The government on Wednesday asked the Reserve Bank of India (RBI) to take action against those responsible for debacle at troubled private lender Lakshmi Vilas Bank (LVB) and improve oversight of entities under its regulation.
Giving finality to the efforts towards salvaging LVB, the Union Cabinet on Wednesday gave its nod to merge LVB with DBS Bank India (DBIL). The amalgamation will come into force on. November 27. All the branches of LVB will function as branches of DBIL and LVB customers, including depositors, will be able to operate as DBIL customers from Friday.
The moratorium on LVB will also be lifted on November 27. DBIL is making arrangements to ensure that service, as usual, is provided to LVB customers, the RBI said in a statement. The banking regulator had placed LVB under the Prompt Corrective Action (PCA) regime in September 2019 due to a sharp rise in bad loans and weakening profitability.
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