Case Brief
RBI has partially modified its earlier directions on Indian Mercantile Co-operative Bank Ltd., Lucknow, while keeping the underlying restrictions in force. The bank had originally been placed under directions effective June 12, 2014, and the latest release modifies paragraph 3 of the October 19, 2015 directive. Depositors may withdraw up to 70% of deposits above the already permitted ₹1,00,000, capped at ₹15,00,000, but if the depositor owes the bank money as borrower or surety, including loans against bank deposits, the amount may be adjusted first against borrowal accounts. All other restrictions and conditions from the June 4, 2014 directive remain unchanged and continue up to the close of business on March 11, 2017, subject to review.
Action Snapshot
- Primary Impact
- Extension
- Entity Type
- Co-operative bank
- Location
- Lucknow, Uttar Pradesh