Supersession of the Board of Directors - Appointment of Administrator – The Lakshmi Vilas Bank Ltd
Case Brief
The Reserve Bank of India, in consultation with the Central Government, superseded the Board of Directors of The Lakshmi Vilas Bank Ltd. under Section 36A of the Banking Regulation Act, 1949 for 30 days. RBI said the step was necessary because of serious deterioration in the bank's financial position and was intended to protect depositors' interests. Shri T. N. Manoharan was appointed as Administrator under the Act.
In consultation with the Central Government, RBI exercised powers under Section 36A of the Banking Regulation Act, 1949 to supersede the Board of Directors of The Lakshmi Vilas Bank Ltd. for a period of 30 days. The stated reason was serious deterioration in the bank's financial position, and the action was taken to protect depositors' interests. Shri T. N. Manoharan was appointed as Administrator under Section 36A(2).
Severity Assessment
Board supersession is a severe governance intervention that places the bank under administration, which falls in severity 5.
The bank's board was removed and administrative control shifted to the appointed Administrator for the stated 30-day period. This affects the bank's governance and management, with the action aimed at safeguarding depositors while RBI oversees the institution.
Published as The Lakshmi Vilas Bank Ltd
RegOversight structures the official RBI release for search and analysis. Use the linked release as the authoritative source.
© 2026 RegOversight by OddVector