Lakshmi Vilas Bank moratorium: Know when customer can withdraw over ₹25,000, other rules3 min read . Updated: 17 Nov 2020, 08:58 PM IST
- If the depositors have more than one account with Lakshmi Vilas Bank, the combined withdrawal limit should not exceed ₹25,000. Know other details
The central government on Tuesday imposed a one-month moratorium on Lakshmi Vilas Bank till 16 December. The Reserve Bank of India bank capped the cash withdrawal limit at ₹25,000 for depositors. "The Reserve Bank had made all possible efforts to facilitate such a process and gave enough opportunities to the bank’s management to draw up a credible revival plan, or an amalgamation scheme, which did not materialise. In the meantime, the bank was facing regular outflow of liquidity. The bank- led efforts through market mechanisms have not fructified, the RBI added.
Here are the moratorium rules depositors must know
1) The depositors can not withdraw more than ₹25,000 from the bank acount (savings, current or any other deposit account) till the moratorium ends.
2) If the depositors have more than one account with Lakshmi Vilas Bank, the combined withdrawal limit should not exceed ₹25,000.
"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," the bank said.
"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," the bank said.
3) The withdrawal limit shall not affect
a) Making of payment of amounts towards any drafts or pay orders issued by the Lakshmi Vilas Bank Limited and remaining unpaid on the date on which the order of moratorium comes into force;
b) Paying the proceeds of the bills received for collection on or before the 17th day of November, 2020;
c) Making payment towards existing liabilities for call money or inter-bank borrowings including letters of credit, which are falling due during the period of moratorium
d) Trades effected prior to the date of moratorium for which settlement is yet to take place;
e) Grant any loans or advances or make investments in any credit instruments
4) The bank may allow withdrawal of more than ₹25,000 to "meet unforeseen expenses"
a) In connection with the medical treatment of the depositor or any person actually dependent on him;
b) Towards the cost of higher education of the depositor or any person actually dependent on him for education in India or outside India;
c) To pay obligatory expenses in connection with marriage or other ceremonies of the depositor or his children or of any other person actually dependent upon him;
d) In connection with any other unavoidable emergency.
Provided that the amount so allowed to be paid out of the balance lying to the credit of the depositor—
a) Shall be reckoned towards the payment due to him under any scheme of reconstruction or amalgamation as may be sanctioned by any competent authority in relation to the said banking company and subject to such conditions as may be provided under such scheme about appropriation of any payment made to a depositor of the said banking company before or on the coming into force of the scheme; and
b) Shall not exceed the sum of ₹5 lakh rupees or the actual balance lying to the credit of the account of such depositor, whichever is less.
5) The RBI also directed that the Lakshmi Vilas Bank Limited may release or deliver goods or securities which have been pledged, hypothecated or mortgaged or otherwise charged to it against any loan, cash credit or overdraft:
a) In any case in which full payment towards all the amounts due from the borrower or borrowers, as the case may be, has been received by it, unconditionally; and
b) In any other case, to such an extent as may be necessary or possible, without reducing the proportions of the margins on the said goods or securities below the stipulated proportions or the proportions which were maintained before this Order came into force, whichever may be higher.