The RBI on Friday cancelled the licence of CKP Cooperative Bank as a result of its monetary instability. In an order, the central financial institution has maintained that the CKP Co-operative Bank Ltd was not able to pay its current and future depositors.
The license of CKP Co-operative Bank Ltd has been cancelled. (Photo: PTI)
The Reserve Bank of India (RBI) on Saturday cancelled the licence of Mumbai-based CKP Co-operative Bank Ltd. The licence of CKP Co-operative Bank Ltd has been cancelled with impact from the shut of enterprise on April 30, 2020, because the financial institution’s monetary place had worsened.
In its order, the central financial institution has maintained that the CKP Co-operative Bank Ltd was not able to pay its current and future depositors as a result of its monetary instability.
In an announcement on Saturday, the RBI mentioned, “The CKP Co-operative Bank Ltd., Mumbai, is prohibited from conducting the enterprise of ‘banking’ which incorporates acceptance of deposits and reimbursement of deposits.”
The Registrar of Co-operative Societies, Pune, Maharashtra, has additionally been requested to concern an order for winding up the affairs of CKP Co-operative Bank Ltd. and appoint a liquidator for the financial institution.
The RBI mentioned, “The financial position of the bank is highly adverse and unsustainable. There is no concrete revival plan or proposal for merger with another bank. Credible commitment towards revival from the management is not visible.”
“The bank is not satisfying the requirement of minimum capital and reserves….The bank is not in a position to pay its present and future depositors, thereby not complying with Section 22(3) (a) read with Section 56 of the Act,” the RBI mentioned.
The central financial institution additional mentioned that the CKP Co-operative Bank’s efforts for revival have been removed from enough although it was given ample time and alternative and dispensations.