Reserve Bank places Lakshmi Vilas Bank Ltd under moratorium
- In view of its weak financials, the Reserve Bank has placed the Lakshmi Vilas Bank Limited under moratorium with immediate effect.
- RBI said the moratorium will be effective for 30 days with a view to protect depositors’ interest.
- Accordingly, RBI has capped all cash withdrawals from the bank to 25,000 rupees.
- According to the banking regulator, the private sector lender has seen a steady decline in its financials with it incurring losses over the last 3 years.