The Reserve Bank of India is satisfied that in the interest of the public, it is necessary to issue certain directions to the Mercantile Urban Co-operative Bank Ltd., Meerut.
RBI has directed that the Mercantile Urban Co-operative Bank Ltd., Meerut, from the close of business on October 06, 2015, shall not, without prior approval in writing from the Reserve Bank of India, grant or renew any loans and advances, make any investment, incur any liability etc.
A sum not exceeding Rupees one thousand of the total balance in every savings bank or current account or any other deposit account by whatever name called, may be allowed to be withdrawn by a depositor provided that wherever such depositor is having liability to the bank in any manner, i.e. either as a borrower or surety, the amount may be adjusted first to the relevant borrowal account/s.
Renewal of the existing term deposits on maturity could be done in the same name and same capacity. It may however invest in Government /SLR approved securities.
The detailed directions are displayed on the bank’s premises for the interested members of public to peruse. The Reserve Bank may consider modifications of the directions depending upon circumstances. The issue of directions by the RBI should not per se be construed as cancellation of banking licence by RBI. The bank will continue to undertake banking business with restrictions, reads the RBI press release.
The instructions will remain in force for a period of six months from the close of business on October 06, 2015 and are subject to review from time to time.
