As news broke that the Reserve Bank of India (RBI) has placed Lakshmi Vilas Bank (LVB) under moratorium till December 16, customers of the bank took their venting to social media platforms.
The move was announced through an order issued by the Ministry of Finance. The bank will not be allowed to make payments exceeding Rs 25,000 to any creditors without prior approval from the RBI.
LVB stock was locked in 20 percent lower circuit in the early trade on November 18.
The RBI, in consultation with the Central government, has superseded the board of directors of LVB for a period of 30 days owing to a serious deterioration in the financial position of the bank. TN Manoharan, former non-executive chairman of Canara Bank has been appointed as the administrator.
After the news broke, customers left a host of complaints under the regulator’s notice on microblogging site Twitter – from questioning “delay” of the move, to bemoaning financial troubles amid the pandemic, recalling previous instances with PMC and Yes Bank and expressing dissatisfaction with private banks.What is happening in the country? You can't keep your money in your home. You can't keep it in the bank because every other day one bank after another is being placed under moratorium. Public suffers.
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— Płodny (@plodny) November 17, 2020
@PMOIndia @narendramodi @rashtrapatibhvn Sir have you ever think how a common man will give his emi and credit card payment after a 2 month lockdown what you will do to rescue them because lockdown was order by government so no income no payment this should be the new law @RBI
— Pinku Mohanty (@PinkuMohanty15) November 17, 2020
Another bank down. Will we again see depositors be left in a lurch
— Kapil Gupta (@kgupta_7) November 17, 2020
Some pled for the moratorium to be reconsidered.
Nirmala ma’am, Lakshmi Vilas Bank is in bad shape for years and this info is in public domain. The financials of the bank have been weakening continuously. Imposing a moratorium of one month will harm the depositors & needy most. And this is no solution. Kindly don’t impose it
— Ra_Bies 2.0 (@Ra_Bies) November 17, 2020
Also Read | Under moratorium, RBI says LVB to merge with DBS Bank
Many called for the RBI to be “more vigilant”, “act sooner” and “please protect depositor money”, others were critical of the regulator “waiting till now” and “acting at the last minute”.You are not controller any more. Why poor people suffer. What are the steps taken by RBI for avoiding this situations
— Bsrinivas (@Bsrinivas654) November 17, 2020
I don't know how can you play with public money. You are watchdog for banks still you guys don't know what fraud going under your nose very shameful. We as general public has lost trust in you. Shame on you RBI. Finally poor public suffer lot cz of your poor attitude.
— Saurabh joshi (@SaurabhDJosh) November 17, 2020
You have stop this kind of activities which happens in bank to early. You guys get awake till the banks get shut down. PMC and Yes bank are the example. Now you guys are saving big ppl Rana kapoor etc, but we as common man alway suffer.
— Saurabh joshi (@SaurabhDJosh) November 17, 2020
Also Read | LVB moratorium: Shareholders get nothing after merger with DBS
Others questioned the credibility of private banks – pointing out that many have been embroiled in issues that have caused pain to customers, stating “loss of trust” in private institutions.
#LakshmiVilasBank Another Pvt Bank which failed.
Pvt Banks have been failing to build public trust. Now it is time to nationalise all private banks instead of privatising national banks.
— Seema (@2019Seema) November 17, 2020
Another Private Bank Failure !!!
One month moratorium on #LakshmiVilasBank. Cash withdrawal limit of Rs 25,000 for depositors.
Forget Privatization, After #YesBankScam & #PMCBankScam question for more regulations & control over private Banks raising again by nationalization.
— Newton Bank Kumar (@idesibanda) November 17, 2020
Twitter being twitter, memes also took centre stage as people looked to humour their pain away.And they say Private banks's service is too good and Govt banks aren't safe as compare to private banks. #lakshmivilasbank pic.twitter.com/EeFUCJYzbF
— Modiji wale 500₹ (@modijiwale500) November 17, 2020
The irony of it. "where Lakshmi resides" ... Looks like she walked out. The outlook is getting bleaker and bleaker
— hari warrier (@hariwar) November 17, 2020
Another one bites the dust! pic.twitter.com/H3XmJhTuA0
— Ashok Balaji (@CyberboyAshok) November 17, 2020
The condition of Customers now pic.twitter.com/dlBZcYNYby
— Rofl Babu #BiharElections2020 (@Rofl_babuu) November 17, 2020
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