RBI has issued certain Directions to Indian Mercantile Cooperative Bank Ltd Lucknow, whereby, as from the close of business on January 28, 2022, the bank shall not, without prior approval of RBI in writing grant or renew any loans and advances, make any investment, incur any liability including borrowal of funds and acceptance of fresh deposits, disburse or agree to disburse any payment whether in discharge of its liabilities and obligations or otherwise, enter into any compromise or arrangement and sell, transfer or otherwise dispose of any of its properties or assets except as notified in the RBI Direction”, says RBI in a press release dated 28th January 2022.
The Direction is being displayed on the bank’s premises for perusal by interested members of the public. In particular, a sum not exceeding ?100,000 (Rupees one lakh only) of the total balance across all savings bank or current accounts or any other account of a depositor, may be allowed to be withdrawn subject to the conditions stated in the above RBI Directions, the release states.
“The issue of the above Directions by the RBI should not per se be construed as cancellation of banking license by 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”, clarifies the RBI.
These Directions shall remain in force for a period of six months from the close of business on January 28, 2022 and are subject to review.