Live
- Punjab Congress chief challenges BJP to nominate state prez Jakhar to contest polls
- Mamata Banerjee continues to fire salvos at Calcutta HC against ruling in school jobs case
- Indian healthcare platform exposed 4.5 lakh sensitive documents, clinical data of patients: Report
- Pratani Ramakrishna Goud’s ‘Dhiksha’ marks grand commencement
- Satyadev shines in raw action avatar with ‘Krishnamma;’ set for a grand release on May 10
- South Korea, Japan could consider simplified entry agreement amid warming ties: Seoul official
- Special Polling Arrangements And Voter Facilities In Outer Manipur Lok Sabha Seat
- Shruti Haasan’s ethnic wear look captivated onlookers
- Crucial schedule of ‘Kubera’ starts in Mumbai
- ‘Rathnam’ review: A worthy addition to Vishal’s filmography
RBI cancels the licence of CKP Co-operative Bank, Mumbai; Depositors to be repaid up to Rs 5 lakh
Reserve Bank of India has said that over 99 per cent of CKP Co-Operative Bank's 1.32 lakh depositors will get full money through Deposit Insurance and Credit Guarantee Corporation (DICGC).
Reserve Bank of India has said that over 99 per cent of CKP Co-Operative Bank's 1.32 lakh depositors will get full money through Deposit Insurance and Credit Guarantee Corporation (DICGC).
RBI's chief general manager in the Department of Communication, Yogesh Dayal, said that the CKP co-operative bank had been under all-inclusive directions that had restricted its activities since 2014 itself, and the decision to cancel the license was taken as there was no scope for its revival.
Reserve Bank of India cancels the licence of The CKP Co-operative Bank Ltd., Mumbai #rbitoday https://t.co/BstRUz4S5p
— ReserveBankOfIndia (@RBI) May 2, 2020
The Reserve Bank of India (RBI) in a press release said, "Vide Speaking Order No DOR.CO.AID/LC-02/12.22.035/2019-20 dated April 28, 2020, cancelled the licence of The CKP Co-operative Bank Ltd., Mumbai, to carry on banking business, with effect from the close of business on April 30, 2020. The Registrar of Co-operative Societies, Pune, Maharashtra, has also been requested to issue an order for winding up the affairs of The CKP Co-operative Bank Ltd., Mumbai and appoint a liquidator for the bank."
In its order cancelling the license of CKP Bank, the RBI said the cooperative bank is not satisfying the requirement of minimum capital and reserves as prescribed in Section 11 (1) read with Section 56 of the Act and capital adequacy and earning prospects as stipulated in Section 22(3)(d) of the Act and also stipulated minimum regulatory capital requirement of 9%. It added the financial position of the bank is highly adverse and unsustainable. There is no concrete revival plan or proposal for a merger with another bank. Credible commitment towards revival from the management is not visible.
The Registrar of Co-operative Societies, Pune has been asked to issue an order for winding up the affairs of the CKP Co-operative Bank and appoint a liquidator for the bank, as per the RBI notification on Saturday.
With the cancellation of licence and commencement of liquidation proceedings, the process of paying to the depositors will be set in motion in accordance with the DICGC Act, 1961. On liquidation, every depositor is entitled to repayment of his/her deposits up to a monetary ceiling of Rs 5,00,000 from the DICGC as per usual terms and conditions.
The RBI action on the bank had come over seven months after it placed the city-based Punjab and Maharashtra Co-operative Bank under directions in September last year due to financial mismanagement by officials.
PMC was one of the largest banks in the space, and the directions, which include the capping of deposit withdrawals, had led to protests by the depositors.
The RBI has said that on liquidation, every depositor is entitled to repayment of his/her deposits up to a monetary ceiling of 5 lakh rupees from the DICGC as per usual terms and conditions.
