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 bank’s financial place had worsened.
In its order, the central bank has maintained that the CKP Co-operative Bank Ltd was not able to pay its current and future depositors due to its financial instability.
In a press release on Saturday, the RBI stated, “The CKP Co-operative Bank Ltd., Mumbai, is prohibited from conducting the business of ‘banking’ which includes acceptance of deposits and repayment of deposits.”
The Registrar of Co-operative Societies, Pune, Maharashtra, has additionally been requested to situation an order for winding up the affairs of CKP Co-operative Bank Ltd. and appoint a liquidator for the bank.
The RBI stated, “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 said.
The central bank additional stated that the CKP Co-operative Bank’s efforts for revival have been removed from satisfactory although it was given ample time and alternative and dispensations.