Kerala Mercantile Co-operative Bank Ltd., Kozhikode, Kerala

RBI has imposed a ₹50,000 penalty on Kerala Mercantile Co-operative Bank Ltd., Kozhikode, for violating specific supervisory directions under the Supervisory Action Framework. The violation involved excessive capital expenditure without prior RBI approval.

The bank must absorb the monetary penalty and continue to comply with RBI’s supervisory directions under SAF. The order does not invalidate customer transactions, but RBI may initiate further action if additional non-compliance is found.

• Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949

RBI has withdrawn the Section 35A directions earlier imposed on Kerala Mercantile Co-operative Bank Ltd., Kozhikode. The withdrawal takes effect from August 28, 2020.

From August 28, 2020, the earlier operating restrictions no longer apply. Depositors are no longer constrained by the withdrawn direction’s withdrawal cap, subject to any other applicable rules or directions not mentioned in this release.

• Section 35 A read with Section 56 of the Banking Regulation Act, 1949
• sub-section (2) of Section 35A read with Section 56 of the Banking Regulation Act, 1949

RBI raised the withdrawal limit for depositors of Kerala Mercantile Co-operative Bank Limited, Kozhikode to ₹50,000 per depositor. The bank remains under the existing All-Inclusive Directions, with all other conditions unchanged.

Depositors can withdraw up to ₹50,000 per depositor instead of ₹2,000, and more than 89% of depositors are stated to be able to withdraw their entire account balance. The bank continues to operate under the original Section 35A/Section 56 directions, so all other restrictions and conditions remain in force.

• Section 35 A
• Section 56 of the Banking Regulation Act, 1949

RBI extended its existing directions on Kerala Mercantile Co-operative Bank Ltd., Kozhikode for another six months. The original restrictions remain in force unchanged.

The bank remains under the same RBI-imposed operational restrictions for the extension period, and the restrictions continue to affect its activities until December 04, 2020 unless further reviewed or modified. Depositors and counterparties remain subject to the constraints flowing from the directions.

• Section 35 A read with Section 56 of the BR Act (AACS), 1949
• sub-section (1) of Section 35 A read with Section 56 of the Banking Regulation Act, 1949

RBI extended its existing directions on Kerala Mercantile Co-operative Bank Ltd. for six more months, effective December 05, 2019 through June 04, 2020.

The bank remains subject to the RBI's operating directions for the extension period, with the same conditions as before. Its operations continue to be constrained under the existing framework until the directions expire or are modified; the release does not indicate any relaxation for depositors or other counterparties.

• Section 35 A read with Section 56 of the BR Act (AACS), 1949
• Section 35 A read with Section 56 of the Banking Regulation Act, 1949