No more than Rs 25,000 can be withdrawn from the bank, according to an RBI directive issued by the Finance Ministry

Lakshmi Bilas Bank has been in a bad situation for the last three years. In the end, the Reserve Bank took the final decision to handle the situation. Customers cannot withdraw more than Rs 25,000 from the bank. The Union Finance Minister has sent the notice to the bank following the notice issued by the RBI. In a few days, Lakshmi Bilas Bank will be merged with DBS Bank.

The RBI has suspended the bank's board of directors. TN Manoharan, a former non-executive chairman of Canara Bank, has been appointed to the post. The bank's capital has been in crisis since September 2019. Then the pressure started with this. Despite repeated warnings to the bank about the capital, no action has been taken by the board of directors.

Hair Loss

The bank was started in 1926. The bank was set up in Karur, Tamil Nadu. The license was issued by the Reserve Bank in June 1958. The bank started commercial operations on August 11, 1958. Since then the bank has started good business. The bank has 563 branches. There are 964 ATMs. The bank has branches in 16 states.