Case Brief
RBI notified that The CKP Co-operative Bank Ltd., Mumbai, Maharashtra, had been under directions since May 2, 2014, and that those directions were earlier extended up to January 31, 2017. The RBI then further extended the validity of the directions from February 1, 2017 to July 31, 2017, subject to review, while also making partial modifications. The order permits limited set-off of loans against deposits only when contractual and KYC conditions are met and forbids adjusting third-party deposits; it also allows regular and secured CC accounts to be treated as standard advances, but bars renewal of CC accounts for the purpose of withdrawal. RBI clarified that the extension and modification should not be read as evidence of substantive improvement in the bank’s financial position.
Action Snapshot
- Primary Impact
- Extension
- Entity Type
- Co-operative bank
- Location