RBI excluded Lakshmi Vilas bank RBI act
On Thursday the reserve bank of India has said that it excluded Lakshmi Vilas bank from the second schedule act of the RBI after it got collaborated with DBS bank India limited, last year.
RBI said in a notification,” we advise that Lakshmi Vilas Bank (LVB) has been excluded from the second schedule of the RBI act, 1934 with effect from November 27, 2020, vide Notification DOR.PSBD.No.1849/16.01.067/2020-21 dated December 17, 2020, which is published in the Gazette of India (Part III – Section 4) dated January 16 – January 22, 2021,”
Though a bank when mentioned in the second schedule of Reserve Bank of India act, then it is known as Scheduled Commercial Bank’.
On Thursday the RBI also claimed a sentence that it has excluded Lakshmi Vilas bank also last year in November. The government has approved the merger of Lakshmi Vilas Bank and DBS Bank India, which is in the midst of a financial crisis. The RBI also replaced the LVB’s board of directors, appointing T N Manoharan, a former non-executive chairman of Canara Bank, as the bank’s administrator for 30 days.
Precisely after yes bank, LVB is the second private bank that has gone through tough times and has run into rough weather during this year. Yes bank was placed under a moratorium once it got critical with the cash maintenance or we can say the capital starvation they had to suffer.
A step was taken by a government to help the yes bank to rescued from the situation as the state-run – state bank of India infused 7250 CR. to the Yes Bank and on behalf took 45 percent of the stake of the bank.