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RBI Cancels Licence of Mumbai-based CKP Co-operative Bank; Depositors to Get Up to Rs 5 Lakh

The Reserve Bank of India (RBI) on Saturday stated it has cancelled the licence of Mumbai-based CKP Co-operative Bank Ltd as its monetary place is unsustainable and in addition not ready to pay its depositors.

The financial institution will not be satisfying the stipulated minimal regulatory capital requirement of 9 per cent, the RBI stated whereas cancelling the licence from the shut of enterprise on April 30.

“Consequent to the cancellation of its licence, The CKP Co-operative Bank Ltd, Mumbai, is prohibited from conducting the business of ‘banking’ which includes acceptance of deposits and repayment of deposits…” it stated.

With the cancellation of licence and graduation of liquidation proceedings, the method of paying the depositors of the co-operative financial institution as per the DICGC Act, 1961 will probably be set in movement.

“On liquidation, every depositor is entitled to repayment of his/her deposits up to a monetary ceiling of Rs 5,00,000 from the Deposit Insurance and Credit Guarantee Corporation (DICGC) as per usual terms and conditions,” the RBI stated.

Giving particulars, the RBI stated the monetary place of the financial institution “is highly adverse and unsustainable”. Also, there is no such thing as a concrete revival plan or proposal for a merger with one other financial institution.

Besides, a reputable dedication in the direction of revival from the administration will not be seen, it added. “The bank is not in a position to pay its present and future depositors,” it stated.

The RBI additional stated the affairs of the financial institution “were and are” being carried out in a fashion detrimental to the general public curiosity and curiosity of the depositors and that the overall character of the administration of the financial institution is prejudicial to the curiosity of depositors as additionally the general public curiosity.

The Registrar of Co-operative Societies, Pune has been requested to challenge an order for winding up the affairs of The CKP Co-operative Bank and appoint a liquidator for the financial institution.

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