Center places Lakshmi Vilas Bank under moratorium, caps withdrawal limit at ₹ 25,000

The Central govt has imposed moratorium for thirty days effective from today, the RBI statement said

The government on November 17 placed Lakshmi Vilas Bank (LVB) under a one-month moratorium, superseded its board and capped withdrawals at ₹ 25,000 per depositor.

The step was taken by the government, on the advice of the Reserve Bank of India (RBI), 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 ”.

TN 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 with DBS Bank.

.

Disclaimer: This post has not been edited by our staff and is published from a syndicated feed. The Original Source of this post can be found at Source link

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest

Kamal wanted Indian 2 to be released before 2019 LS election, says Shankar

The director blames Lyca Productions for the delay of over three years in completing the project Film director S....

Coronavirus | 3.15 lakh fresh cases, 3,588 deaths reported

India recorded 3,15,600 new COVID-19 cases until 9.30 p.m. on Tuesday. As many as 3,588 new deaths were also registered. The country has so...

Stalin appeals for contributions to fight COVID-19

Contributions to be used exclusively for COVID-19 relief measures. Tamil Nadu Chief Minister M.K. Stalin on Tuesday appealed to the general public, charity institutions and...

Transpersons appeal for special vaccination drive

The south representative of the National Council for Transgender Persons, Gopi Shankar of Madurai, has written to the Health Secretaries of the southern States...

Coronavirus | Cases rising in 15 States; positivity rate at 21%,...

Balram Bhargava says more Rapid Antigen Tests will be conducted from now on. The national COVID-19 positivity rate stood at 21% and 310 of the...

More Articles