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The Reserve Bank on Friday said it has imposed several restrictions on Indian Mercantile Cooperative Bank Ltd, Lucknow, including a cap of Rs 1 lakh on withdrawals.
The restrictions came into force from closure of business hours on January 28, 2022 (Friday).
In a statement, RBI said the Lucknow-based co-operative bank will not, without its prior approval, grant or renew any loans and advances, or make any investment.
”In particular, a sum not exceeding Rs 1 lakh 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the total balance across all savings bank or current accounts or any other account of a depositor, may be allowed to be withdrawn…”, subject to certain conditions, it added.
The central bank, however, added the directions should not per se be construed as a cancellation of the banking licence by the RBI.’
The bank will continue to undertake banking business with restrictions till further notification from RBI.
“The Reserve Bank may consider modifications of these Directions depending upon circumstances,” it noted.
The restrictions would remain in force for six months and are subject to review.
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