Lakshmi Vilas Bank News LIVE Updates: Bank Placed under Moratorium till Dec 16, Withdrawals Capped at Rs 25,000

Lakshmi Vilas Bank News LIVE Updates: Lakshmi Vilas Bank on Tuesday was brought under moratorium effective immediately until December 16. The month-long moratorium means cash withdrawal for customers at the private-sector lender has been capped at Rs 25,000. The moratorium has been imposed on the basis of an application submitted by the Reserve Bank of India (RBI) under Section 45 of the BR Act, according to a statement from the Ministry of Finance.

Shortly after announcing the one-month moratorium, the RBI unveiled a scheme to merge it with DBS Bank India Ltd. (DBIL). Announcing the scheme of amalgamation, the RBI said DBIL will bring in additional capital of Rs 2,500 crore upfront, to support credit growth of the merged entity.

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