<h1>RBI Restricts Indian Mercantile Co-operative Bank u/s 35A; Limits Withdrawals and Loan Activities Until Further Notice.</h1> The Reserve Bank of India (RBI) has imposed restrictions on Indian Mercantile Co-operative Bank Ltd., Lucknow, under Section 35A of the Banking Regulation Act, 1949, effective from June 12, 2014. The bank is prohibited from granting or renewing loans, making investments, incurring liabilities, or disbursing payments without RBI's prior approval. Depositors can withdraw up to Rs. 1,000, subject to adjustments for any liabilities to the bank. Existing term deposits may be renewed upon maturity. These restrictions aim to improve the bank's financial position and will remain until further notice, without implying a cancellation of its banking license.