During the 601st Meeting of the Central Board of the Reserve Bank of India (RBI) that took place on March 26, 2021, what significant decision was made?

Question

RBI decided to discontinue the printing of Rs. 2000 notes
RBI approved the proposal to merge Lakshmi Vilas Bank with DBS Bank India
RBI announced a cut in the repo rate by 25 basis points
RBI decided to launch a new digital currency named "e-Rupee"

Solutons With Key Points

Answer- B

The RBI board greenlit the consolidation plan of Lakshmi Vilas Bank and DBS Bank India, which involves merging the former with the latter.

The decision was made due to the Lakshmi Vilas Bank's precarious financial state and its incapacity to generate sufficient funds to comply with regulatory mandates.