Case Brief
The Reserve Bank of India cancelled the licence of The CKP Co-operative Bank Ltd., Mumbai, via Speaking Order No. DOR.CO.AID/LC-02/12.22.035/2019-20 dated April 28, 2020, effective from the close of business on April 30, 2020. RBI said the bank’s financial position was highly adverse and unsustainable, with no concrete revival plan or merger proposal, no credible management commitment to revival, insufficient capital and reserves, and failure to meet minimum regulatory capital requirements. RBI also found the bank was not in a position to pay present and future depositors and that its affairs were being conducted in a manner detrimental to public interest and the interests of depositors. Following the cancellation, RBI requested the Registrar of Co-operative Societies, Pune, Maharashtra, to initiate winding up and appoint a liquidator. The release also notes that deposit insurance repayment under the DICGC framework will be set in motion, subject to the applicable ceiling.
Action Snapshot
- Primary Impact
- License cancellation
- Entity Type
- Co-operative bank
- Location