The Reserve Bank of India has extended the Directions issued to the Indian Mercantile Co-operative Bank Ltd., Lucknow for a further period of three months up to December 11, 2015, subject to review. The bank has been under directions since June 12, 2014.
According to the Directions, the 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, make any investment, incur any liability including borrowal of funds and several other types of restriction.
Further, the bank can allow its depositors to withdraw a sum not exceeding Rs one lakh of the total balance in every savings bank or current account or any other deposit account on one occasion during the entire period of Directions, that is, from June 12, 2014 to December 11, 2015.
A copy of the Directions is displayed in the bank’s premises for perusal by interested members of public.
The issue of the Directions by the Reserve Bank should per se not be construed as cancellation of banking license by the Reserve Bank. The Reserve Bank may consider modifications of these Directions depending upon circumstances, reads a RBI release.