The Ministry of Finance has put Lakshmi Vilas Bank, the private sector bank, under moratorium with immediate effect till December 16, 2020. The Ministry has put a stay on all the actions and proceedings of the bank during this period.
The Ministry has also put a cap on the maximum withdrawal limit by the customers of Lakshmi Vilas Bank. During the moratorium period, the customers can withdraw a maximum of Rs 25,000 per month.
The Ministry imposed a moratorium on Lakshmi Vilas Bank after it received an application cum recommendation from the Reserve Bank of India (RBI) under Section 45 of the BR Act.
The Ministry issued a statement clarifying its decision to impose the moratorium. The statement said, “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 subsection (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.”
However, the Ministry, as well as the Reserve Bank of India has stated that the interest of the customers shall be protected at any cost. RBI, in a tweet, assured that the depositors of the Lakshmi Vilas Bank need not panic.
Though the opposition parties have lashed an attack on the government for putting the hard-earned savings of the general public at risk. Congress leader Rahul Gandhi questioned the government for its unplanned moves.
बैंक मुसीबत में हैं और GDP भी। महँगाई इतनी ज़्यादा कभी नहीं थी, ना ही बेरोज़गारी। जनता का मनोबल टूट रहा और सामाजिक न्याय प्रतिदिन कुचला जा रहा है।
विकास या विनाश?
— Rahul Gandhi (@RahulGandhi) November 18, 2020