Lakshmi Vilas Bank shares hit 20% lower circuit after it lands under moratorium

Account-holders can withdraw above Rs 25,000 only for unforeseen expenses including medical treatment, education etc, an official statement said.

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The central bank has assured depositors of LVB that their interest will be fully protected and has asked depositors not to panic. RBI will put a Scheme of Amalgamation in place well before the expiry of the moratorium and will ensure depositors are not put through undue hardship or are inconvenienced for longer than absolutely necessary, it said.

On the merger front, the central bank has invited suggestions and objections, if any, from members, depositors and other creditors of transferor bank (LVB) and transferee bank (DBIL), on the draft scheme.

The draft scheme has also been sent to the transferor bank and transferee bank for their suggestions and objections. The suggestions and objections will be received by the Reserve Bank up to 5 pm on November 20, 2020.