Journalist, banking and economy
The Reserve Bank of Asia (RBI) has chose to step up to get rid of the unraveling of a 93-year-old little personal bank that may have destabilised India’s Rs97 lakh crore ($1.3 trillion) bank system.
The main bank has proposed (pdf) to merge Chennai-based Lakshmi Vilas Bank (LVB), which includes been experiencing allegations of bad governance and a mounting bad loan problem, with DBS Bank India, part of the growth Bank of Singapore. The RBI has additionally placed a limit of Rs25,000 on withdrawal from LVB’s customers’ records till Dec. 16.
“The rapidly deteriorating financial position regarding the LVB relating to liquidity, capital as well as other critical parameters, and also the lack of any legitimate arrange for infusion of money has necessitated RBI to simply take immediate action in public areas interest and especially in the attention associated with the depositors and correctly,” the RBI stated in a declaration. Continue reading “India’s central bank steps in to save a tiny bank that is 93-year-old”