Budget 2020

If bank fails, Rs 5 lakh deposit insurance amount to be available immediately to depositors

The finance minister, Nirmala Sitharaman, has announced that in case a bank fails or withdrawals from the bank are stopped due to financial pressure on the bank, the depositors will be able to get immediate access to their deposits upto the deposit insurance amount of Rs 5 lakh, i.e., the amount to which deposits are […]

Budget 2020

Bond, share write-offs in bank rescue acts done in depositor interest, legal: Das

Governor Shaktikanta Das on Friday defended RBI‘s decisions to write-off bonds and shares of lenders during rescues of Yes Bank and Lakshmi Vilas Bank as legal ones taken in depositors‘ interest. Das said there cannot be a fixed template while dealing with cases of stress experienced by banks and working out solutions. It can be […]

Budget 2020

Lakshmi Vilas Bank: Has ease of credit availability in our system encouraged fraud?

By Uma Shashikant There is reason to cheer the move to merge Lakshmi Vilas Bank with DBS. Stakeholders will cry as if they have been cheated, but this solution has its merits. No one will deny that the Indian banking system requires serious repair. There are multiple reasons for the serious systematic risks posed by […]

Budget 2020

Lakshmi Vilas Bank depositors’ money safe, says RBI-appointed administrator

T N Manoharan, the RBI-appointed administrator of Lakshmi Vilas Bank, on Wednesday said that depositors’ money is safe and expressed confidence of completing the lender’s merger with DBS Bank India within the deadline set by the regulator. On Tuesday, the Reserve Bank of India (RBI) appointed former non-executive chairman of Canara Bank T N Manoharan […]

Budget 2020

One year later, PMC Bank depositors still struggling to get their money back

Mumbai: For depositors of the tainted Punjab and Maharashtra Cooperative (PMC) Bank, the situation is not very different from what it was almost a year ago when the RBI placed withdrawal restrictions on the bank after the mega scam involving misreporting of loans with senior bank officials’ involvement came to light. Exactly one year ago, […]

Budget 2020

View: Put depositors first. Relief to borrowers not at their cost

A government committee set up to consider the issue of interest waiver on loans that enjoyed a six-month moratorium because of Covid-19 may only provide partial relief and that too on the compound interest component and not on the primary interest, ET reported on Friday. Last week, RBI governor Shaktikanta Das had also weighed in […]