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RBI cancels CKP Co-op Bank's licence on adverse financial position

Depositors to get up to Rs 5 lakh under deposit insurance on liquidation

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The RBI in a statement said there was no concrete revival plan or proposal for merger with another bank and that credible commitment towards revival from the management was not visible.

Abhijit Lele Mumbai

2 min read Last Updated : May 02 2020 | 11:23 PM IST

The Reserve Bank of India (RBI) on Saturday cancelled the licence of Mumbai-based CKP Co-operative Bank, saying the lender’s financial position was highly adverse and unsustainable.

The banking regulator has asked the Maharashtra government to start the process of winding up operations and appoint a liquidator.

On liquidation, every depositor of the bank is entitled to get up to Rs 5 lakh only from the Deposit Insurance and Credit Guarantee Corporation, in line with the guidelines.

The licence has been cancelled with effect from the close of business on April 30, 2020.

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Topics : Reserve Bank of India RBI cooperative banks Maharashtra government RBI bank licence

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