RBI extends restrictions on Indian Mercantile Cooperative Bank till Oct 2023. Details here
1 min read 26 Jul 2023, 08:10 PM ISTThe Reserve Bank had in January 2022 imposed several restrictions on Indian Mercantile Cooperative Bank, Lucknow including a cap of ₹1 lakh on withdrawals
PremiumThe Reserve Bank of India (RBI) Wednesday extended the validity of restrictions imposed on Indian Mercantile Cooperative Bank Lucknow (Uttar Pradesh) from the close of business on January 28, 2022 under Section 35A of the Banking Regulation till October 27, 2023. The validity of the directions has been extended from time-to-time, the last being up to July 27, 2023.
''The Reserve Bank of India, in exercise of powers vested in it under sub-section (1) of Section 35 A read with Section 56 of the Banking Regulation Act, 1949, hereby directs that the aforesaid Directions shall continue to apply to the bank till October 27, 2023 as per the Directive DOR.MON.No.D45/12.28.007/2023-24 dated July 24, 2023, subject to review,'' said the central bank in its statement on July 26, 2023.
The banking regulator had in January 2022 imposed several restrictions on Indian Mercantile Cooperative Bank, Lucknow including a cap of ₹1 lakh on withdrawals.
The RBI had in January 2022 directions restricted the Indian Mercantile Cooperative Bank to grant or renew any loans and advances, make any investment without prior approval of RBI in writing. The banking regulator also directed the cooperative Bank not to incur any liability including borrowal of funds and acceptance of fresh deposits, disburse or agree to disburse any payment whether in discharge of its liabilities and obligations or otherwise, enter into any compromise or arrangement and sell, transfer or otherwise dispose of any of its properties or assets except as notified in the RBI Direction, without prior approval of RBI in writing.
In particular, a sum not exceeding ₹100,000 (Rupees one lakh only) of the total balance across all savings bank or current accounts or any other account of a depositor, may be allowed to be withdrawn subject to the conditions stated in the above Reserve Bank directions.
