Mercantile Urban Co-operative Bank Ltd., Meerut

RBI cancelled the licence of The Mercantile Urban Co-operative Bank Ltd., Meerut, Uttar Pradesh. The bank can no longer conduct banking business or accept/repay deposits.

The bank must stop banking operations immediately, including accepting fresh deposits and repaying deposits as part of normal banking business. Depositors and counterparties are affected because the institution is no longer permitted to operate as a bank.

• Section 22 of the Banking Regulation Act, 1949
• Section 56 of the Banking Regulation Act, 1949
• Section 5(b) of the Banking Regulation Act, 1949

RBI extended the existing directions on Mercantile Urban Co-operative Bank Ltd., Meerut for another six months. The bank remains subject to the same operating restrictions under Section 35A.

The bank continues to operate under RBI-imposed Section 35A directions until April 05, 2017, unless further modified earlier. Customers and counterparties remain subject to the same restrictions and conditions already in place, and the bank must continue complying with the existing directive as extended.

• Section 35A(1) of the Banking Regulation Act, 1949 (AACS)

RBI extended the existing Section 35A directions on Mercantile Urban Co-operative Bank Ltd., Meerut for six more months. The other terms of the directive remained unchanged.

The bank continues to operate under the existing RBI directions until October 05, 2016 unless modified earlier. Customers and counterparties remain subject to whatever operational constraints the original Section 35A directive imposes, though the release does not specify any new additional restriction beyond the extension.

• Section 35A of the Banking Regulation Act, 1949 (AACS)

RBI placed Mercantile Urban Co-operative Bank Ltd., Meerut under Section 35A directions with tight operational restrictions. The bank can continue business only within specified limits, including a capped withdrawal amount per depositor.

The bank must operate within RBI-imposed limits from October 06, 2015 for six months unless modified or reviewed earlier. Depositors face withdrawal caps, and the bank cannot expand lending, take fresh deposits, or freely create liabilities without prior RBI approval.

• Section 35A of the Banking Regulation Act, 1949 (As Applicable to Co-operative Societies) read with Section 56 of the Banking Regulation Act, 1949