Lakshmi Vilas Bank depositor? Spread deposits across banks to lower risks

If you hold an account at Lakshmi Vilas Bank, which has been placed under a moratorium restricting withdrawal of more than Rs 25,000, you must have many queries. We try to answer some of them.

Tamil Nadu-headquartered Lakshmi Vilas Bank (LVB) has been placed under a moratorium that will last from November 17-December 16, 2020. During this period, depositors cannot withdraw more than Rs 25,000 (even if they have multiple accounts). If you are an LVB account holder, you would have many queries. Below, we try to answer some of the key ones.

Can I withdraw more than Rs 25,000?  

You can do so under special circumstances (see word box). In such circumstances, you can be paid either Rs 5 lakh or the balance in your account — whichever is lower. Addressing a