“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,” learn the assertion.
“There is no concrete revival plan or proposal for a merger with another bank. Credible commitment towards revival from the management is not visible. 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 financial institution just isn’t in a position to pay its current 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 assertion learn.
“No helpful objective could be served by permitting the financial institution to proceed. Rather, the general public curiosity could be adversely affected if the financial institution is allowed to hold on its banking enterprise any additional. The financial institution is prohibited from conducting the enterprise of ‘banking’ which incorporates acceptance of deposits and reimbursement of deposits,” it added.
“With the cancellation of licence and commencement of liquidation proceedings, the process of paying the depositors of The CKP Co-operative Bank Ltd., Mumbai, as per the DICGC Act, 1961 will be set in motion. On liquidation, every depositor is entitled to repayment of his/her deposits up to a monetary ceiling of Rs 5,00,000/- (Rupees Five lakh only) from the Deposit Insurance and Credit Guarantee Corporation (DICGC) as per usual terms and conditions,” it additional added.