In a major development, the Reserve Bank of India (RBI) has withdrawn all Directions earlier imposed on National Mercantile Co-operative Bank Ltd., Lucknow, allowing the bank to resume normal operations. The withdrawal took effect from the close of business on November 21, 2025.
RBI had originally issued the Directions under Section 35A read with Section 56 of the Banking Regulation Act, 1949, dated March 09, 2023, for a period of six months.
These Directions-often imposed to safeguard the interests of depositors and ensure prudent financial management-were modified periodically and last extended up to December 10, 2025.
After a fresh review of the bank’s financial position, the central bank noted satisfactory improvement. Being satisfied that withdrawal of the Directions is in the public interest, RBI exercised its powers under the Banking Regulation Act to lift the restrictions.
