LVB-DBS merger: What is Fixed Deposit interest rate for Lakshmi Vilas Bank customers now?

By: |
November 30, 2020 12:07 PM

On interest rates of savings bank accounts and fixed deposits, DBIL said that these will continue to remain same till further notice.

Lakshmi Vilas Bank-DBS mergerEarlier last month, the RBI placed crisis-ridden LVB under a moratorium and announced its merger with DBIL.

Fixed Deposit interest rate for Lakshmi Vilas bank customers: Following the amalgamation of Laksmi Vilas Bank (LVB) and DBS Bank, several customers of the former are concerned about their fixed deposit and saving account. In a statement on Monday (November 30, 2020), DBS Bank India Limited (DBIL) assured all LVB customers that they can continue to access all banking services in the merged entity.

Talking about the interest rates on savings bank accounts and fixed deposits, DBIL said that these will continue to remain same till further notice. This means, there is no change in interest rates for the savings account and fixed deposit account holders of Lakshmi Vilas Bank for now. If there is any change, account holders will be informed about it by DBIL.

Fixed Deposit account holders of Lakshmi Vilas Bank will continue to enjoy the same interest at which they had opened their account.

“The moratorium imposed on LVB was lifted from 27 November 2020 and banking services were restored immediately with all branches, digital channels and ATMs functioning as usual. LVB customers can continue to access all banking services. The interest rates on savings bank accounts and fixed deposits are governed by the rates offered by the erstwhile LVB till further notice,” DBIL said.

“All LVB employees will continue in service and are now employees of DBIL on the same terms and conditions of service as under LVB,” it added.

Lakshmi Vilas Bank (LVB) has been merged with DBS Bank India Limited (DBIL), which is a wholly-owned subsidiary of DBS Group Holdings Ltd. The scheme of amalgamation under the special powers of the Government of India and Reserve Bank of India under Section 45 of the Banking Regulation Act, 1949 came into effect on 27 November 2020.

DBIL also said that the DBS team is working closely with LVB employees to integrate LVB’s systems and network into DBS over the coming months. “Once the integration is complete, customers will be able to access a wider range of products and services, including access to the full suite of DBS digital banking services which have won multiple global accolades,” it said in the statement.

Commenting on the merger, Surojit Shome, CEO of DBS Bank India Limited, said: “The amalgamation of LVB has enabled us to provide stability to LVB’s depositors and employees. It also gives us access to a larger set of customers and cities where we do not currently have a presence. We look forward to working with our new colleagues towards being a strong banking partner to LVB’s clients.”

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