New Delhi, 29/1: Indian Mercantile Cooperative Bank Ltd of Lucknow has suffered a major setback. Actually, the Reserve Bank of India i.e. RBI has imposed many restrictions on Indian Mercantile Cooperative Bank Limited including the withdrawal limit of one lakh rupees.
According to RBI, these restrictions have come into effect from business hours on January 28, 2022 (Friday). RBI said in a statement on Friday that the Lucknow-based Co-operative Bank will not grant or renew any loan, advance or issue any investment 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.
Recently RBI imposed penalty on 8 cooperative banks
Recently RBI has imposed penalty on 8 cooperative banks for deficiencies in regulatory compliance. RBI had said that a fine of Rs 4 lakh has been imposed on Associate Co-Operative Bank Limited, Surat (Gujarat). Varachha Sahakari Bank Ltd., Surat has been fined one lakh rupees for violation of certain norms of the Depositor Education and Awareness Fund Scheme, 2014. A fine of Rs 2 lakh has been imposed on Mogveera Co-Operative Bank Ltd., Mumbai.
A monetary penalty of Rs 2 lakh has also been imposed on Vasai Janata Sahakari Bank, Palghar. Apart from this, RBI has imposed a fine of Rs 1 lakh on Rajkot People’s Co-operative Bank, Rajkot. RBI has imposed a fine of Rs 2 lakh on Bhadradri Co-operative Urban Bank. A fine of one lakh each has been imposed on Jammu Central Co-operative Bank Ltd., Jammu and Jodhpur Nagarik Sahakari Bank, Jodhpur for violation of certain norm