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

The Reserve Bank of India (RBI) has imposed certain restrictions on Indian Mercantile Cooperative Bank Ltd, Lucknow.
These restrictions came into force from closure of business hours on January 28, 2022. The restrictions would remain in force for six months.
Following are certain Directions issued to the bank by RBI:
- 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.
The bank shall not, without prior approval of RBI
- 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
- sell, transfer or otherwise dispose of any of its properties or assets except
RBI has imposed the above restrictions in exercise of powers vested in it under sub section (1) of Section 35 A read with Section 56 of the Banking Regulation Act (AACS), 1949.

Points to Remember:

Headquarter of Indian Mercantile Cooperative Bank Ltd.
Withdrawal cap fixed by RBI on Indian Mercantile Cooperative Bank Ltd
RBI has imposed restriction under which section of RBI Act? sub section (1) of Section 35 A read with Section 56