The licence of The CKP Co-operative Bank Ltd., Mumbai to carry on banking business has been cancelled by the Reserve Bank of India (RBI) with effect from the close of business on April 30, 2020. RBI has also approached the Registrar of Co-operative Societies, Pune, to issue an order for winding up the affairs of the bank and to appoint a liquidator for the bank.
The Reserve Bank of India has cancelled the license of the bank stating the financial position of the bank is highly adverse and unsustainable. The bank is not meeting the condition of minimum capital and reserves, capital adequacy and earning prospects, and also stipulated minimum regulatory capital requirement. RBI has also found that the affairs of the bank were and are being conducted in a manner prejudicial to the public interest as well as interest of the depositors.
Important takeaways for all competitive exams:
- RBI 25th Governor: Shaktikanta Das; Headquarters: Mumbai; Founded: 1 April 1935, Kolkata.