On Wednesday, The Union Cabinet held a meeting after which, Union Minister Prakash Javadekar gave a press conference and informed about the important decisions taken by the Cabinet. Javadekar said that the Union Cabinet has approved the proposal for merger of the troubled Lakshmi Vilas Bank with DBIL (Development Bank India Limited).
Javadekar informed that the RBI (Reserve Bank of India) had proposed the merger of Lakshmi Vilas Bank with DBIL (Development Bank India Limited). This will provide relief to about 20.5 lakh depositors of the troubled bank. Significantly, jobs of about 4000 employees will also be retained. He also said that the government has ordered the RBI to punish such misdemeanors who bring the bank to the brink of drowning.
Javadekar said that several important decisions have been taken in the meeting of the Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi. The government will now take advantage of the debt market as a capital to promote a self-reliant India.
He said that under this the National Investment and Infrastructure Fund (NIIF) was established. The cabinet has decided that an investment of six thousand crores will be made in it. This investment process will be completed in two years. The Union Minister said that with this, more than one lakh crore rupees will be raised by the bond market for infrastructure development.
Significantly, in the Corona period, where the economic condition of the people has deteriorated, the Reserve Bank of India (RBI) imposed a ban on private sector Lakshmi Vilas Bank undergoing financial crisis for a month. Under which the bank account holders could now withdraw only up to ₹25,000. This also affected the bank’s shares. Lakshmi Vilas Bank has became the second bank of private sector, after YES Bank to be in trouble in the F.Y. 2019-20. Earlier, restrictions were imposed on Yes Bank in the month of March. The government then raised Yes Bank with the help of State Bank of India (SBI). SBI had infused ₹7,250 crore in return for a 45 per cent stake in Yes Bank.