During the period of moratorium, following restrictions have been imposed on the Lakshmi Vilas Bank. The bank, without the permission of the Reserve Bank of India shall not:
(a) make, in the aggregate, payment to a depositor of a sum exceeding twenty-five thousand rupees lying to his credit, in any savings, current or any other deposit account, by whatever name called:
If a depositor maintains more than one account in the same capacity and in the same right, the total amount payable from all the accounts together shall not exceed the limit indicated above:
wherever such depositor is having dues payable to the bank in any manner, either as a borrower or surety, the amount payable to such depositor shall be made after adjusting the relevant borrowal accounts;
(b) make, in the aggregate, payment to any creditor exceeding a sum of twenty-five thousand rupees if not otherwise. However this shall not affect-
(i) making of payment of amounts towards any drafts or pay orders issued by the Lakshmi Vilas Bank Limited and remaining unpaid on the date on which the order of moratorium comes into force;
(ii) paying the proceeds of the bills received for collection on or before the 17thday of November, 2020;
(iii) making payment towards existing liabilities for call money or inter-bank borrowings including letters of credit, which are falling due during the period of moratorium; and
(iv)trades effected prior to the date of moratorium for which settlement is yet to take place;
(c) grant any loans or advances or make investments in any credit instruments.
In relation to payment to any depositor of the Lakshmi Vilas Bank, the Reserve Bank may permit the bank to allow payment to its depositors an amount in excess of twenty-five thousand rupees to meet unforeseen expenses, as under:
(i) in connection with the medical treatment of the depositor or any person actually dependent on him;
(ii) towards the cost of higher education of the depositor or any person actually dependent on him for education in India or outside India;
(iii) to pay obligatory expenses in connection with marriage or other ceremonies of the depositor or his children or of any other person actually dependent upon him;
(iv) in connection with any other unavoidable emergency: Provided that the amount so allowed to be paid out of the balance lying to the credit of the depositor—
(a) shall be reckoned towards the payment due to him under any scheme of reconstruction or amalgamation as may be sanctioned by any competent authority in relation to the said banking company and subject to such conditions as may be provided under such scheme about appropriation of any payment made to a depositor of the said banking company before or on the coming into force of the scheme; and
(b) shall not exceed the sum of five lakh rupees or the actual balance lying to the credit of the account of such depositor, whichever is less.
Also the Lakshmi Vilas Bank may, during the moratorium, make the following further payments, namely, the amounts for repaying loans or advances granted against Government securities or other securities, to the Bank by the RBI or the SBI or by any other bank and remaining unpaid on the date on which this Order comes into force.
During the period of moratorium, the Bank shall be permitted to operate its accounts with the Reserve Bank of India or with any other bank for the purpose of making the payments aforesaid, provided that nothing shall require the Reserve Bank of India or any other bank to satisfy itself that the conditions imposed by Mortarium Order are being followed
The Lakshmi Vilas Bank may also release or deliver goods or securities which have been pledged, hypothecated or mortgaged or otherwise charged to it against any loan, cash credit or overdraft:
(i) in any case in which full payment towards all the amounts due from the borrower or borrowers, as the case may be, has been received by it, unconditionally; and
(ii) in any other case, to such an extent as may be necessary or possible, without reducing the proportions of the margins on the said goods or securities below the stipulated proportions or the proportions which were maintained before this Order came into force, whichever may be higher.