Udayavni Special

Lakshmi Vilas Bank placed under moratorium, withdrawals capped at Rs 25,000


PTI, Nov 18, 2020, 10:28 AM IST

Mumbai: The government on Tuesday placed Lakshmi Vilas Bank under a one-month moratorium, superseded its board and capped withdrawals at Rs 25,000 per depositor.

The step was taken by the government, on the advice of the Reserve Bank, in view of the declining financial health of the private sector lender.

In a statement, the RBI said in the absence of a credible revival plan, with a view to protect depositors’ interest and in the interest of financial and banking stability, there was no alternative but to apply to the central government for imposing a moratorium under Section 45 of the Banking Regulation Act, 1949.

“Accordingly, after considering the Reserve Bank’s request, the Central Government has imposed moratorium for thirty days effective from today,” it said.

As per the moratorium order, Lakshmi Vilas Bank will not, without RBI’s permission, “make, in the aggregate, payment to a depositor of a sum exceeding twenty-five thousand rupees lying to his credit, in any savings, current or any other deposit account, by whatever name called.”

T N Manoharan, former non-executive chairman of Canara Bank, has been appointed as the administrator of the bank.

Meanwhile, the RBI has also placed in public domain a draft scheme of amalgamation of Lakshmi Vilas Bank (LVB) with DBS Bank.

Udayavani is now on Telegram. Click here to join our channel and stay updated with the latest news.

Top News

Maha: Shopkeeper from Guj files cheating complaint against Raj Kundra’s firm

HC allows Rajput’s father to approach single judge over release of film

Will not launch new debt scheme till SAT decides our plea, Franklin Templeton tells SC

MyGov stands tall as effective example of participative governance: PM Modi

After years of emotional abuse techie woman files for divorce as husband found on gay apps

Olympic silver-medallist Mirabai Chanu returns to warm reception

Yediyurappa’s constituency Shikaripura shuts down as mark of protest


Related Articles More

No plan to print currency notes to tide over crisis, says FM

Rupee slips 4 paise to 74.44 against US dollar in early trade

Revolt Motor to launch low-priced e-bike model

ISRO merchandiser programme takes off with 8 companies already onboard

RBI central board short of 9 non-official directors

MUST WATCH

Police checked in with Belthangady Municipal Harish Poonja

Vasantha Kulal | Major Dairy Cattle Diseases and their Management

Udayavani News Bulletin 26-July-2021

PUPPIES FEEDING ON PIG

WATER SEEPING ACROSS THE ROADS OF CHIKKODI

Latest Additions

Maha: Shopkeeper from Guj files cheating complaint against Raj Kundra’s firm

HC allows Rajput’s father to approach single judge over release of film

Will not launch new debt scheme till SAT decides our plea, Franklin Templeton tells SC

MyGov stands tall as effective example of participative governance: PM Modi

BJP failed to provide 24X7 electricity, AAP will if it comes to power in Goa: Kejriwal

Thanks for visiting Udayavani

You seem to have an Ad Blocker on.
To continue reading, please turn it off or whitelist Udayavani.