Big action by RBI! Licence of this bank cancelled - Account holders alert!
According to RBI, the bank is not in a position to pay its present and future depositors.
The Reserve Bank of India has cancelled the banking licence of CKP Co-operative Bank, as its financial position has become unsustainable.
Accordingly, the RBI took the decision on April 28 which came into effect at the close of business hours on Thursday.
"The Registrar of Co-operative Societies, Pune, Maharashtra, has also been requested to issue an order for winding up the affairs of The CKP Co- operative Bank Ltd., Mumbai and appoint a liquidator for the bank," RBI said in a statement on Saturday.
As per the statement, 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," the statement said.
"The bank is not satisfying the requirement of minimum capital and reserves... and capital adequacy and earning prospects as stipulated in Section 22(3)(d) of the Act and also stipulated minimum regulatory capital requirement of 9 per cent."
According to RBI, the bank is not in a position to pay its present and future depositors.
"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," the statement said.
"The bank's efforts for revival have been far from adequate though the bank has been given ample time and opportunity and dispensations. No merger proposal has been received in respect of the bank. Thus, in all lik elihood, public interest would be adversely affected if the bank were allowed to carry on its business any further."
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
80% return in one year: Brokerage suggests buying this Maharatna PSU stock for 2-3 days, check target
Lok Sabha elections 2024 Phase 4: Voting date, timing, states, union territories, seats, key candidates and constituencies | LS Polls
5 investment schemes that provide monthly pension to senior citizens fixed deposit fds savings scss guaranteed return atal pension yojana post office monthly income swps mutual fund
HPCL dividend 2024: OMC Hindustan Petroleum Corporation announces Rs 16.50 dividend, check record date
Akshaya Tritiya bank holiday or not Basava Jayanti 2024 festival date Banks closed or open tomorrow may 10 friday check out state-wise full list
09:51 AM IST