Customers of this bank will not be able to withdraw more than Rs 1 lakh, RBI imposed restrictions

RBI has imposed several restrictions on Lucknow-based Indian Mercantile Cooperative Bank Limited, including a withdrawal limit of Rs 1 lakh. According to RBI, these restrictions have come into effect from business hours on January 28, 2022 (Friday). RBI said in a statement that the Lucknow-based co-operative bank will not grant or renew any loan, advance or make any investment without its approval.

RBI said that no depositor of the bank will be allowed to withdraw an amount exceeding one lakh rupees from the total balance in savings, current or other accounts. However, the central bank said that these prohibitory instructions should not be seen as cancellation of banking license by RBI.

Earlier, RBI imposed a fine of Rs one lakh on Varachha Sahakari Bank Ltd., Surat for violation of certain norms of Depositor Education and Awareness Fund Scheme, 2014 and Mogveera Co-operative Bank Ltd., Mumbai for non-compliance of certain instructions related to KYC norms. was imposed a fine of Rs.2 lakh for At the same time, a monetary fine of Rs 2 lakh was also imposed on Vasai Janata Sahakari Bank, Palghar.

RBI had imposed a fine of Rs one lakh on Rajkot People’s Co-operative Bank, Rajkot for contravention of the directions on ‘Loans and advances to directors, relatives and firms/entities in which they are interested’. The RBI imposed a fine of Rs 2 lakh on Bhadradri Co-operative Urban Bank. A fine of one lakh each was imposed on Jammu Central Co-operative Bank Ltd., Jammu and Jodhpur Nagarik Sahakari Bank, Jodhpur for violation of certain norms.

RBI, however, said the penalty is based on deficiencies in regulatory compliance and does not question the validity of any transaction or agreement entered into by banks with their respective customers.