The Reserve Bank of India (RBI) on Saturday (2 May) announced the suspension of the operations of the Mumbai based CKP Co-operative Bank Limited (Ltd) and cancelled its banking licence, reports Economic Times.
The RBI said that all the depositors of the bank are entitled to repayment of their deposits up to a monetary ceiling of Rs five lakh under the DICGC Act, 1961 which provides the depositors with deposit insurance.
The strong decision to suspend operations and cancel the bank's license came as the RBI reasoned that the financial position of the bank was highly unsustainable and that there was no concrete revival plan or proposal for a merger with another bank.
RBI also underscored that there was no credible commitment from the management of the bank towards a course of revival. The central bank said, "The affairs of the bank were and are being conducted in a manner detrimental to the public interest and the 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 RBI will now go ahead with the liquidation proceedings against the bank post which the depositors would be paid with the insured sums on their deposits.
As you are no doubt aware, Swarajya is, all in all, a reader-subscription-backed business model and in order to make sure we build a media platform with only the best interests of India at heart, we need your backing.
And in challenging times like this, we need your support now more than ever—to continue bringing you stories that are often shrugged off.
For us to invest in quality reporting and continue bringing you the right stories, it takes a lot of time and money.
Partner with us, be a patron or a subscriber. We need your support, throughout.