RBI cancels Mumbai co-op bank licence

HYDERABAD: The RBI on Saturday suspended operations of Mumbai-based CKP Co-operative Bank and cancelled its licence. With the cancellation of licence and commencement of liquidation proceedings, the process of paying the depositors of the co-operative bank as per the DICGC Act, 1961 will be set in motion. Upon liquidation, every depositor is entitled to repayment of deposits up to Rs 5 lakh from the DICGC. 

“The financial position of the bank is highly adverse and unsustainable. There is no concrete revival plan or proposal for merger with another bank. Credible commitment towards revival from the management is not visible,” RBI said. According to RBI, the bank wasn’t in a position to pay its present or future depositors and is in violation of regulatory norms. “The affairs of the bank were and are being conducted in a manner detrimental to the public interest and interest of the depositors and that the general character of the management of the bank is prejudicial to the interest of depositors as also public interest,” it said.