The story so far: On November 17, the Centre, acting on the recommendation of the Reserve Bank of India, imposed a moratorium on Lakshmi Vilas Bank for a period of 30 days. The RBI, the regulatory body overseeing the country’s financial system, has the power to ask the government to have a moratorium placed on a bank’s operations for a …
The central government on Tuesday imposed a one-month moratorium on Tamil-Nadu based Lakshmi Vilas Bank Ltd., effective from 6pm on November 17. However, depositors will be allowed to withdraw more than Rs25,000 to “meet unforeseen expenses” under conditions such as medical treatment, “obligatory expenses” for weddings and ceremonies, unavoidable emergencies and payment of higher education fees in and outside India, …
