Case Brief
The Reserve Bank of India extended the existing Section 35A directions against Indian Mercantile Co-operative Bank Ltd., Lucknow, Uttar Pradesh, for a further three months from June 12, 2015 to September 11, 2015. The directions restrict the bank from granting or renewing loans, making investments, incurring liabilities, accepting fresh deposits, making payments, entering into compromises or arrangements, and disposing of assets except as permitted by RBI. Depositors may withdraw up to ₹1,00,000 once during the directions period. The RBI also stated that the directions should not be construed as cancellation of the banking licence and may be modified depending on circumstances.
Action Snapshot
- Primary Impact
- Extension
- Entity Type
- Co-operative bank
- Location
- Lucknow, Uttar Pradesh