The restrictions will remain in force for six months and are subject to review.
Mumbai:
The Reserve Bank on Friday said it has imposed several restrictions, including a limit of Rs 1 lakh, on withdrawals on Indian Mercantile Cooperative Bank Ltd, Lucknow.
The restrictions came into force with the closure of business hours on January 28, 2022 (Friday).
In a statement, the RBI said that the Lucknow-based co-operative bank shall not, without its prior approval, grant or renew any loans and advances, or make any investments.
“Specifically, withdrawal of an amount exceeding Rs 1 lakh of the aggregate balance in all savings bank or current accounts or any other account of the depositor may not be permitted…”, subject to certain conditions, it added. Gone.
However, the central bank said that the directions should not be construed as cancellation of banking license by RBI.
It said, “The bank will continue to carry on banking business with restrictions until further notification from RBI. The Reserve Bank may consider modification of these directions depending on the circumstances.”
The restrictions will remain in force for six months and are subject to review.
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