India, Nov. 25 -- The Union Cabinet chaired by Prime Minister Narendra Modi has given its approval to the Scheme of Amalgamation of Lakshmi Vilas Bank Limited (LVB) with DBS Bank India Limited (DBIL).

On November 17, to protect depositors' interest and in the interest of financial and banking stability, on RBI's application under section 45 of the Banking Regulation Act, 1949, LVB had been under moratorium for a period of 30 days. In parallel, RBI, in consultation with the Government, superseded the Board of Directors of LVB and appointed an Administrator to protect the depositors' interest, according to the official release.

After inviting suggestions and objections from the public and stakeholders, RBI prepared and provided a scheme f...