Lakshmi Vilas Bank Brought Under Moratorium: Can Depositor Withdrawal More Than 25K? Check How

New Delhi: The Reserve Bank of India (RBI) has brought Lakshmi Vilas Bank under moratorium for 30 days, while restricting withdrawals by depositors to Rs 25,000 each. However, the depositors can withdraw more than 25K under certain provisions made by the Centre, a report by India Today said on Thursday. Also Read – Spotted! Aamir Khan, Shah Rukh Khan, Nushrat Bharucha Papped in And Around Mumbai

Check these four special provisions under which a depositor can withdraw more than 25K from the bank: Also Read – ‘You Were Shaken Out of Slumber’: Delhi HC Slams Kejriwal Govt Over Alarming Spike in COVID-19 Cases and Fatalities

1) If a depositor wants to withdraw for medical treatment of themselves or anybody who is dependent on them Also Read – ISL 2020-21: First Major Tournament in India Since Coronavirus Lockdown Set to Kick-Off

2) For cost towards education of the depositor or anyone dependent on them

3) In connection with obligatory expenses in connection with marriage or other ceremonies of the depositor or his/her children or of any other person actually dependent upon him/him, the India Today report mentioned

4) Under unavoidable emergency

All the depositors must note that if they wish to withdraw money under above-mentioned provisions, then will have to undergo scrutiny and verification by the bank.

Notably, the step to bring Lakshmi Vilas Bank come under moratorium was taken by the government, on the advice of the Reserve Bank, in view of the declining financial health of the private sector lender. T N Manoharan, former non-executive chairman of Canara Bank, has been appointed as the administrator of the bank.

Besides, the central bank has also placed in public domain a draft scheme of amalgamation of Lakshmi Vilas Bank with DBS Bank.

LVB is the third bank to be placed under moratorium since September last year after the cooperative bank PMC in 2019 and private sector lender Yes Bank this March. While Yes bank has successfully been revived under the guidance of State Bank, the PMC resolution is still a far cry.