MANU/FNSV/0051/2020

Ministry : Ministry of Finance

Department/Board : Financial Services

Order No. : SO4127(E)

Date of Order : 17.11.2020

Date of Publication : 17.11.2020

Subject: Finance

Order of moratorium in respect of the Lakshmi Vilas Bank Limited

S.O.4127(E).--In exercise of the powers conferred by sub-section (2) of section 45 of the Banking Regulation Act, 1949 (10 of 1949), the Central Government, after considering an application made by the Reserve Bank of India under sub-section (1) of that section, hereby makes this Order of moratorium in respect of the Lakshmi Vilas Bank Limited, Karur, Tamil Nadu for the period with effect from 18:00 hrs on the 17th day of November, 2020 up to and inclusive of 16th day of December, 2020 and hereby stays the commencement or continuance of all actions and proceedings against that banking company during the period of moratorium, subject to the condition that such stay shall not in any manner prejudice the exercise by the Central Government of its powers under clause (b) of sub-section (4) of section 35 of the said Act or the exercise by the Reserve Bank of India of its powers under section 38 of the said Act.

2. The Central Government hereby also directs that during the period of moratorium, the Lakshmi Vilas Bank Limited (the said banking company) shall not, without the permission in writing of the Reserve Bank of India,-

(a) make, in the aggregate, payment to a depositor of a sum exceeding twenty-five thousand rupees lying to his credit, in any savings, current or any other deposit account, by whatever name called:

Provided that if a depositor maintains more than one account in the same capacity and in the same right, the total amount payable from all the accounts together shall not exceed the limit indicated above:

Provided further that wherever such depositor is having dues payable to the bank in any manner, either as a borrower or surety, the amount payable to such depositor shall be made after adjusting the relevant borrowal accounts;

(b) make, in the aggregate, payment ........