Lakshmi Vilas Bank put under moratorium, cash withdrawal capped
The Centre on Tuesday imposed a moratorium on Lakshmi Vilas Bank (LVB) and capped cash withdrawal to Rs 25,000 in a month. Meanwhile, the Reserve Bank of India (RBI) plans to merge the beleaguered lender with DBS Bank India.
Tamil Nadu-based Lakshmi Vilas Bank has been placed under moratorium by the RBI for 30 days which is until the 16th of December. However, RBI also assured that the interest of people will be protected. According to RBI, there is a serious deterioration in the bank’s financial position and the DMK merger will enhance its performance.