Restrictions Imposed on Indian Mercantile Cooperative Bank Limited

January 31, 2022
Current Context: The Reserve Bank of India (RBI) has imposed restrictions on Indian Mercantile Cooperative Bank Limited.
Restrictions Imposed on Indian Mercantile Cooperative Bank Limited
  • It is based in Lucknow, Uttar Pradesh.
  • Also, a cap of Rs 1 lakh on withdrawals was imposed by the central bank.
  • The restrictions imposed as per the direction mentioned in subsection (1) of Section 35 A read with Section 56 of Banking Regulation Act, 1949.
  • The withdrawal restriction of Rs 1 lakh is applied to all saving and current accounts or any other account.
  • The restrictions will remain in force for the next 6 months, commencing from 28th Jan 2022.
  • Therefore, the Indian Mercantile Cooperative Bank Limited is not allowed to grant or renew any loans, perform advances and investments, etc without any prior approval from RBI.

Question: 

Q.1 RBI imposed restrictions on Indian Mercantile Cooperative Bank Limited, which is headquartered in _____?
a. Mumbai, Maharashtra
b. Lucknow, Uttar Pradesh
c. Surat, Gujarat
d. Chennai, Tamil Nadu

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