Union Cabinet Approves Scheme Of Amalgamation Of Lakshmi Vilas Bank With Development Bank India Ltd – Approval Of Lakshmi Vilas Bank Merger, Relief To 20 Lakh Depositors And 4 thousand Employees

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News Desk, Amar Ujala, New Delhi
Updated Wed, 25 Nov 2020 03:39 PM IST

Union Minister Prakash Javadekar
– Photo: ANI

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The Union Cabinet met on Wednesday. After the meeting, Union Minister Prakash Javadekar gave a press conference and informed about the decisions of the cabinet. Javadekar said that the Union Cabinet has approved the proposal for merger of the troubled Lakshmi Vilas Bank with Development Bank India Limited (DBIL). Also, FDI in ATC was also approved.

Javadekar said that the Reserve Bank has ordered the merger of Lakshmi Vilas Bank with Development Bank India Limited. This will provide relief to 20.5 lakh depositors. Besides, the jobs of 4000 employees will also be retained. He told that the government has told the RBI that such misdemeanors who bring the bank to the brink of drowning should be punished.

The Union Minister said that the Cabinet has approved an investment of Rs 6,000 crore by the government in the NIIF loan platform sponsored by the National Investment and Infrastructure Fund. Also, FDI in ATC has been approved in the telecom sector. ATC Pacific Asia holds 12 per cent shares of Tata group company ATC.

Javadekar said that many important decisions have been taken in the meeting of the Cabinet Committee on Economic Affairs (CCEA) and chaired by Prime Minister Narendra Modi. The government will now take advantage of the debt market as a capital to promote a self-reliant India.

He said that under this the National Investment and Infrastructure Fund (NIIF) was established. The cabinet has decided that an investment of six thousand crores will be made in it. This investment process will be completed in two years. The Union Minister said that with this, more than one lakh crore rupees will be raised by the bond market for infrastructure development.

Significantly, in the Corona period, where the economic condition of the people has deteriorated. At the same time, the Reserve Bank of India (RBI) imposed a ban on private sector Lakshmi Vilas Bank undergoing financial crisis for a month. Under which the bank account holders could now withdraw only up to Rs 25,000. This affected the bank’s shares.

RBI said that only in case of emergency five lakh rupees can be withdrawn from the bank. This includes raising money for marriage, education and other important tasks. But for this the customer has to present the proof.

The second private sector bank caught in trouble
Lakshmi Vilas Bank has become the second private sector bank after YES Bank to be in trouble this year. Restrictions were imposed on Yes Bank in March. The government then raised Yes Bank with the help of State Bank of India (SBI). SBI had infused Rs 7,250 crore in return for a 45 per cent stake in Yes Bank.

The Union Cabinet met on Wednesday. After the meeting, Union Minister Prakash Javadekar gave a press conference and informed about the decisions of the cabinet. Javadekar said that the Union Cabinet has approved the proposal for merger of the troubled Lakshmi Vilas Bank with Development Bank India Limited (DBIL). Also, FDI in ATC was also approved.

Javadekar said that the Reserve Bank has ordered the merger of Lakshmi Vilas Bank with Development Bank India Limited. This will provide relief to 20.5 lakh depositors. Besides, the jobs of 4000 employees will also be retained. He told that the government has told the RBI that such misdemeanors who bring the bank to the brink of drowning should be punished.

The Union Minister said that the Cabinet has approved an investment of Rs 6,000 crore by the government in the NIIF loan platform sponsored by the National Investment and Infrastructure Fund. Also, FDI in ATC has been approved in the telecom sector. ATC Pacific Asia holds 12 per cent shares of Tata group company ATC.

Javadekar said that many important decisions have been taken in the meeting of the Cabinet Committee on Economic Affairs (CCEA) and chaired by Prime Minister Narendra Modi. The government will now take advantage of the debt market as a capital to promote a self-reliant India.

He said that under this the National Investment and Infrastructure Fund (NIIF) was established. The cabinet has decided that an investment of six thousand crores will be made in it. This investment process will be completed in two years. The Union Minister said that with this, more than one lakh crore rupees will be raised by the bond market for infrastructure development.

Significantly, in the Corona period, where the economic condition of the people has deteriorated. At the same time, the Reserve Bank of India (RBI) imposed a ban on private sector Lakshmi Vilas Bank undergoing financial crisis for a month. Under which the bank account holders could now withdraw only up to Rs 25,000. This affected the bank’s shares.

RBI said that only in case of emergency five lakh rupees can be withdrawn from the bank. This includes raising money for marriage, education and other important tasks. But for this the customer has to present the proof.

The second private sector bank caught in trouble
Lakshmi Vilas Bank has become the second private sector bank after YES Bank to be in trouble this year. Restrictions were imposed on Yes Bank in March. The government then raised Yes Bank with the help of State Bank of India (SBI). SBI had infused Rs 7,250 crore in return for a 45 per cent stake in Yes Bank.

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