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RBI Imposed a moratorium on Lakshmi Vilas Bank

Published on November 19, 2020
Current Context: The Reserve Bank of India has imposed a moratorium on Lakshmi Vilas Bank (LVB).
RBI Imposed a moratorium on Lakshmi Vilas Bank
  • The moratorium is applied for a period of 1 month.
  • RBI has put a restriction of Rs 25,000 on withdrawals from the bank, due to serious deterioration in lender’s financial position.
  • Also, the RBI has superseded the BODs of LVB for 1 month. For this, RBI has appointed T N Manoharan as Administrator of LVB.
  • This moratorium is imposed under section 45 of the Banking Regulation Act,1949.
  • Also, RBI has released a draft describing a scheme of amalgamation for LVB with DBS Bank India Ltd. 
  • The central bank aims to complete this merger process before the moratorium period ends.
  • Static Part: 
    • HQ of RBI: Mumbai
    • Governor of RBI: Shaktikanta Das.
    • Deputy Governors of RBI: BP Kanungo, MK Jain, MD Patra and Rajeshwar Rao.
    • HQ of LVB: Chennai, Tamil Nadu

Question: 

Q.1 Recently, RBI has imposed moratorium of 1 month on which of the following bank?
a. Dhanlaxmi Bank
b. City Union Bank
c. Karur Vyasa Bank
d. Lakshmi Vilas Bank (LVB)
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