Ban on Indian Mercantile Cooperative Bank, account holders will not be able to withdraw more than 1 lakh

Ban on Indian Mercantile Cooperative Bank

The Reserve Bank today announced the Indian Mercantile Cooperative Bank (Indian Mercantile Cooperative Bank But many restrictions have been imposed, in which the withdrawal limit has also been imposed. Now the amount of more than one lakh rupees cannot be withdrawn from the bank, the Reserve Bank (RBIThese restrictions of ) have come into force with the end of working hours in the bank on Friday. According to the order, the restrictions issued on Indian Mercantile Cooperative Bank will continue for the next 6 months, after which they will be reviewed and then any further decision will be taken. Earlier this week, the Reserve Bank had approved eight co-operative banks (Cooperative Bank) for deficiencies in regulatory compliance.

What is the decision of the Reserve Bank

In a statement, the Reserve Bank said that the Lucknow-based Co-operative Bank cannot grant any loan or advance or renew any loan or advance without permission. Along with this, the bank has also been banned from making any investment without permission. At the same time, the Reserve Bank said that with the compliance of the rules, all the account holders of the bank, whether they are savings account holders or current account holders, will be able to withdraw only up to one lakh rupees. However, the central bank made it clear that these restrictions will not have any effect on the license of the bank. RBI said that the cooperative bank will be able to continue its banking business with restrictions till further orders and the central bank may also consider changes in these instructions according to the circumstances.

Fine imposed on 8 co-operative banks

Earlier this week, the Reserve Bank had fined eight co-operative banks for lapses in regulatory compliance. According to the information given, the Associate Co-Operative Bank Limited, Surat (Gujarat) imposed a fine of Rs.4 lakh for non-compliance with the directions. The 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. Mogavira Co-Operative Bank Limited, Mumbai has been fined Rs 2 lakh for non-compliance of certain instructions related to KYC norms. A fine of Rs 2 lakh was also imposed on Vasai Janata Sahakari Bank, Palghar. Further, the penalty was imposed on Rajkot People’s Co-operative Bank, Rajkot, Bhadradri Co-operative Urban Bank, Jammu Central Co-operative Bank Ltd., Jammu and Jodhpur Nagrik Sahakari Bank, Jodhpur. However, RBI said that the penalty was based on deficiencies in regulatory compliance. and it does not cast into question the validity of any transaction or agreement entered into by the banks with their respective customers.

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