The Reserve Bank of India has extended Directions issued to Indian Mercantile Co-operative Bank based in Lucknow for a further period of six months from December 12, 2014 to June 11, 2015, subject to review. The bank was under directions since June 12, 2014.
According to the Directions, Indian Mercantile Co-operative Bank Ltd., Lucknow cannot and without prior approval of the Reserve Bank in writing grant or renew any loans and advances. The Directions have many other restrictions for the UCB.
Further, the bank can allow its depositors to withdraw a sum not exceeding Rupees one lakh of the total balance.
RBI has asked the bank to display a copy of the Directions on the bank’s premises for perusal by interested members of public.
The release reads “the issue of the Directions by the Reserve Bank should per se not be construed as cancellation of banking license by the Reserve Bank.”
