Cabinet approves merger of Lakshmi Vilas Bank in DBS and investment of Rs 6,000 crore in NIIF - Newztezz Online


Wednesday, November 25, 2020

Cabinet approves merger of Lakshmi Vilas Bank in DBS and investment of Rs 6,000 crore in NIIF

New Delhi:
 Union Minister Prakash Javadekar today briefed a press conference on the decisions taken in the Modi cabinet. He said the government has decided to merge Lakshmi Vilas Bank with DBS Bank of India. There will be no restriction on depositors withdrawing their rupee.

The government has also approved an investment of Rs 6,000 crore for the National Infrastructure Investment Fund (NIIF). It was announced by Finance Minister Nirmala Sitharaman in the Self-Reliant India Package 3.0.

The government has also made a big announcement regarding FDI. The government has approved 2480 road FDI for M / s ATC telecom infrastructure. The investment is made by M / s ATC Asia Pacific Limited. ATC Pacific Asia has acquired a 12 per cent stake in Tata Group company ATC.

Regarding the merger of Lakshmi Vilas Bank with DBS, Prakash Javadekar said that no employee of the bank will be laid off. He said that in view of such incidents, the Reserve Bank has been told that those responsible should be punished. The Reserve Bank has also been asked to keep a close watch on such incidents.

The Reserve Bank had on November 17 placed Lakshmi Vilas Bank on a one-month moratorium. The RBI had ordered that no customer could withdraw more than Rs 25,000 from the bank for the next one month except for marriage, education, treatment and other necessary works.

The financial condition of Lakshmi Vilas Bank has been bad for the last 3 years. By FY20, the bank had outstanding loans of Rs 13,827 crore and deposits of Rs 21,443 crore.

Javadekar said a number of important decisions were taken at a meeting of the Cabinet and Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Modi today. He said the Modi government's emphasis is on promoting a self-reliant India. The debt market will now be taken advantage of to raise capital for it.

It was under this that NIIF was established. The Cabinet today decided to invest Rs 6,000 crore in it. This investment will take place over the next two years. This will enable the bond market to raise more than Rs 1 lakh crore for infrastructure development.

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