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RBI Archive Image | (Photo credits: PTI)
Mumbai, May 2: Fear and panic seized the clients of the CKP Cooperative Bank in Mumbai after the Reserve Bank of India (RBI) canceled the bank’s license due to poor financial health and growing debt. Reports report that the central bank revoked the bank’s license on Thursday night, sending shock waves to its clients. According to a report by Money control, The bank is not in a position to pay its depositors in full when their claims accumulate along with other reasons. Due to the current crisis, more than 11,000 depositor-investors and about 1.25 lakh of account holders will have to prepare for the problems.
The bank’s current financial position leaves no room for its revival, according to various media reports. the Money control Report further reports that the bank’s FD of Rs 485 crore is also in debt. The RBI had previously placed several restrictions on the operation and services of the CKP Bank. The restrictions have been in place for the withdrawal of deposits since 2014. Reports report that the bank’s transactions were prohibited due to the increase in its losses and the decrease in the Bank’s net worth. However, the bank tried to cope and had a net worth of Rs 230 crore this year compared to Rs 146 crore in 2016. Despite operating gains, the bank’s license has been canceled due to the decrease of net worth. RBI Governor Shaktikanta Das says banks may decide to offer a 3-month moratorium on NBFCs.
On Saturday, the Maharashtra Aam Aadmi Party (AAP) unit excavated at the Center and said ‘Modi Sarkar is Anti Poor’. “Comes to cooperative banks and rescues private banks in stealth of blockade, on 04-30-2020, RBI sent cooperative bank CKP bank license cancellation email to its current administration as reported by a local newspaper, “read the tweet.
Here is the AAP Maharashtra Tweet:
In 2014, restrictions were imposed on CKP Bank, just like PMC Bank last year. Now, stealthily, the CKP bank has been closed, with no mercy on depositors, who are mostly middle-class people with little savings. 1/9
– AAP महाराष्ट्र (@AAPMaharashtra) May 2, 2020
The CKP-Bank is based in Dadar, Mumbai. Last year, in May, more than 1.50 lakh of CKP Bank depositors and account holders had requested the assistance of Prime Minister Narendra Modi in reviving the bank. the C.K.P. Co-op Bank Ltd is a leading bank in the cooperative banking sector in Mumbai. Established in 1915, it is one of the oldest urban cooperative banks in Mumbai. Have your headquarters in MatungaMumbai The bank has 8 branches spread across the Mumbai and Thane districts.
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