Lakshmi Vilas Bank depositors no need to panic: Administrator

Chennai: Assuring about 20 lakh depositors of the Lakshmi Vilas Bank (LVB) now under moratorium that there is no need to panic and all glitches in withdrawal of deposits – subject to a maximum of Rs 25,000 – will be sorted out, the RBI appointed Administrator T.N. Manoharan said ATM machines were to start working from Thursday.

He also said there is sufficient liquidity with the LVB to meet the depositors’ needs and the bank is taking care of that.

“Since Tuesday evening, the overall withdrawal of deposits from the LVB by depositors was about Rs 10 crore,” Manoharan told reporters.

On Tuesday, the Reserve Bank of India (RBI) placed the LVB under moratorium for 30 days and capped deposit withdrawals at Rs 25,000.

On Wednesday, confusion prevailed in some LVB branches with staff not able to explain to the depositors on the restrictions on withdrawals.

Manoharan said the bank’s software systems are being tweaked to incorporate the new restrictions. From Thursday onwards, the operations will be smooth for the depositors, he assured.

He also added that the RBI may pass a general order to ease the withdrawal.

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