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The Reserve Bank of India (RBI) on Saturday canceled the license of Mumbai-based CKP Co-operative Bank Ltd. The license of CKP Co-operative Bank Ltd was canceled with the impact of the closure of the company on April 30, 2020, because the monetary place of the financial institution had worsened.
In its order, the central financial institution has maintained that CKP Co-operative Bank Ltd was unable to pay its current and future depositors as a result of its monetary instability.
In an announcement Saturday, the RBI mentioned: “CKP Co-operative Bank Ltd., Mumbai is prohibited from carrying out the” banking “business that incorporates deposit acceptance and deposit refund.”
The Registrar of Cooperative Societies, Pune, Maharashtra has also been asked to refer to an order to liquidate the affairs of CKP Co-operative Bank Ltd. and to appoint a liquidator for the financial institution.
The RBI mentioned: “The bank’s financial position is highly adverse and unsustainable. There is no concrete reactivation plan or a proposal to merge with another bank. Credible management’s commitment to recovery is not visible. ”
“The bank does not meet the minimum capital and reserves requirement … The bank is not in a position to pay its present and future depositors, therefore it does not comply with Section 22 (3) (a) read with Section 56 of the Law, ”mentioned the RBI.
The central financial institution also mentioned that the efforts of the CKP Cooperative Bank for reactivation have been eliminated in sufficient quantity, although it was given enough time and alternatives and waivers.
