Apex bank in the country, the Reserve Bank of India has cancelled the licence of a co-operative bank based in Maharashtra. The RBI has cancelled the licence of CKP Co-operative Bank Ltd. The licence of the bank was cancelled because the financial position of the bank has gone unsustainable and it is not in a position to pay its depositors.
The bank is not satisfying the stipulated minimum regulatory capital requirement of 9 per cent, the RBI said while cancelling the licence from the close of business on April 30.
“Consequent to the cancellation of its licence, The CKP Co-operative Bank Ltd, Mumbai, is prohibited from conducting the business of ‘banking’ which includes acceptance of deposits and repayment of deposits. On liquidation, every depositor is entitled to repayment of his/her deposits up to a monetary ceiling of Rs 5,00,000 from the Deposit Insurance and Credit Guarantee Corporation (DICGC) as per usual terms and conditions”, said RBI.
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.
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