RBI imposes restrictions on Indian Mercantile Cooperative Bank; withdrawals capped at Rs 1 lakh | Personal Finance News

New Delhi: The Reserve Bank on Friday mentioned it has imposed a number of restrictions on Indian Mercantile Cooperative Bank Ltd, Lucknow, together with a cap of Rs 1 lakh on withdrawals.

The restrictions got here into power from closure of enterprise hours on January 28, 2022 (Friday).

In a press release, RBI mentioned the Lucknow-based co-operative financial institution won’t, with out its prior approval, grant or renew any loans and advances, or make any funding.

“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the total balance across all savings bank or current accounts or any other account of a depositor, may be allowed to be withdrawn…”, topic to sure situations, it added.

The central financial institution, nonetheless, added the instructions shouldn’t per se be construed as a cancellation of the banking license 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 famous. Also Read: PLI scheme for textiles: Center extends deadline for purposes until Feb 14

The restrictions would stay in power for six months and are topic to evaluation. Also Read: Bank Holidays in February 2022: Banks to stay shut for 12 days, test essential dates

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