It was also alleged that the bank was involved in cheating and money laundering.
The Allahabad High Court has issued a notice to the Reserve Bank on a plea seeking a CBI probe against Indian Mercantile Cooperative Bank.
The Lucknow bench of the high court fixed hearing on the matter in the third week of November.
A division bench of Justices A R Masoodi and O P Shukla issued the notice to the Reserve Bank of India (RBI) on Tuesday on a PIL.
The petitioner's counsel, Ashok Pandey, submitted that Indian Mercantile Cooperative (IMC) Bank had granted a loan of Rs 10 crore despite a ban.
It was also alleged that the bank was involved in cheating and money laundering.
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