RBI imposes restrictions on Lucknow-based Indian Mercantile Cooperative Bank Ltd with a withdrawal cap of Rs 1 lakh for six months

The Reserve Bank on January 28, 2022 said it has imposed several restrictions on Indian Mercantile Cooperative Bank Ltd, Lucknow, including a cap of ₹ 1 lakh on withdrawals. The restrictions came into force from closure of business hours on January 28, 2022. The restrictions would remain in force for six months.

The withdrawal limit has been fixed at a sum not exceeding Rs. 100,000 of the total balance across all savings bank or current accounts or any other account of a depositor. RBI has imposed the above restrictions in the exercise of powers vested in it under subsection (1) of Section 35 A read with Section 56 of the Banking Regulation Act (AACS), 1949.