New Delhi, November 17: The Centre has placed Lakshmi Vilas Bank under moratorium effective 6 pm, November 17 until December 16, the Ministry of Finance said on Tuesday. The Centre has also capped the withdrawal limit at monthly Rs 25,000 per account holder during the period of moratorium, the ministry added. However, there are some relaxations for Lakshmi Vilas Bank account holders for unforeseen expenses such as medical treatment, education-related fees etc.
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During the moratorium, Lakshmi Vilas Bank will not be allowed to make any payment worth more than Rs 25,000 to the depositor, without any written permission from the Reserve Bank of India (RBI). In addition to it, the bank is not permitted to make payment to any creditor exceeding Rs 25,000, without the permission of the central bank.
The moratorium has been imposed on Lakshmi Vilas Bank on the basis of an application submitted by Reserve Bank of India under Section 45 of the BR Act, the Ministry of Finance said.