부산대학교 도서관

The Reserve Bank of India (RBI), on November 17, 2020, issued two notifications with regard to Lakshmi Vilas Bank (LVB): (1) applying to central government for issuing an order placing LVB under moratorium, and (2) proposing an amalgamation of DBS Bank India with LVB. The government issued the order of moratorium on November 17, 2020 and sanctioned the amalgamation with effect from 27 November 2020. The merger of DBS India with LVB was an exceptional case where RBI and the government had to act on a fire-fighting made to protect the depositors' interests. This was also the first time when RBI resorted to the merger of an Indian entity with a foreign bank, which was also cleared by the government. This case study helps the reader to: (1) understand the performance parameters of a bank; (2) gain insights on the significant events that led to the downfall of LVB; (3) understand PCA and evaluate its implications; (4) learn about RBI's role in protecting depositors' interests; and (5) understand the timing of PCA and mechanisms to protect both depositors and investors. [ABSTRACT FROM AUTHOR]