Punjab and Maharashtra Cooperative Bank has been put under restrictions, including limiting withdrawals, by the RBI, following the unearthing of a Rs 4,355-crore scam.
The amalgamation provides stability and better prospects to LVB's depositors, customers and employees following a period of uncertainty.
The central bank is likely to continue with the accommodative monetary stance keeping the hope alive for a rate cut as and when needed.
Last week, the Reserve Bank of India released the Report of the RBI’s Internal Working Group to Review Extant Ownership Guidelines and Corporate Structure for Indian Private Sector Banks.
Assuming a 5-6% trendline growth, the effective output loss during the first half of the current fiscal is upwards Rs 20 lakh crore.
Many stakeholders including bank unions have raised questions on the manner in which the LVB was merged with subsidiary of a foreign bank, saying that RBI has gifted LVB for free.
The increase in the forex kitty was on account of a rise in foreign currency assets, a major component of the overall reserves.
During the Yes Bank rescue earlier this year also, there was an over Rs 7,000-crore bond write-off, but that involved a different instrument called additional tier-I bonds.
Capital account convertibility will continue to be a process, rather than an event: RBI Governor Shaktikanta Das
It can be noted that capital account convertibility is a very sensitive subject as it deals with liberalisation of capital transactions into and out of a country.
Economic recovery stronger than expected, need to be watchful of demand sustainability: Shaktikanta Das
It can be noted that the Indian economy contracted by 23.9 per cent in the first quarter of the fiscal year, and the RBI expects the economy to shrink by 9.5 per cent in FY21.
Officials said that while food inflation will come down by December, with global crude prices rising in anticipation of a Covid vaccine, central banks would be cautious about inflation rates.
According to the sources close to the development, FRL had approached the Court of SIAC saying the arbitration proceedings were part of a contract to which the company is not a party.
Depositors of Lakshmi Vilas Bank will be able to operate their accounts as customers of DBS Bank India with effect from Friday.
It can be noted that the policy of trying to allow the rupee to appreciate at the cost of forex reserves in 2009-11 finally led to massive depreciation in 2011, 2013 and 2018.
Promoted by IDBI Bank in 2010, IDBI MF runs 22 schemes with robust Assets Under Management (AUM) across products.