CKP Co-operative Bank licence cancelled by RBI; depositors to get up to Rs. 5 lakh

On 2^nd May, Reserve Bank of India cancelled CKP Co-operative Bank licence which will lead to halting of all operations of Co-operative Bank.The financial position of the Co-operative Bank is highly adverse and unsustainable, no good revival plan or proposal to merge with another bank and also the commitment towards the revival from Co-operative bank is not satisfying, and that is why RBI said that they cancelled the licence of CKP Co-operative Bank.

With licence been cancelled and commencement of liquidation proceedings, CKP Co-operative Bank Ltd., Mumbai will start the process of paying the depositors, as per 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 DICGC as per usual terms and conditions.

“The affairs of the bank were and are being conducted in a manner detrimental to public and depositors interest and that the general character of the management of the bank is prejudicial to the interest of depositors as also public interest,” RBI said in a statement.

“There has not been enough efforts by the bank for revival though the bank has been given ample time and opportunity and dispensations. Because no merger proposal has been received in respect of the bank, the bank cannot be allowed to carry the business any further as it will adversely affect the public interest.” RBI added.