The Reserve Bank of India (RBI) has cancelled the licence of The CKP Co-operative Bank Ltd., Mumbai, to carry on banking business, with effect from the close of business on April 30, 2020. “The financial position of the bank is highly adverse and unsustainable,” RBI said in a statement. “There is no concrete revival plan or proposal for merger with another bank. Credible commitment towards revival from the management is not visible.”
Clarifying about deposits of account holders the order said that depositors of the bank have been entitled to repayment up to a monetary ceiling of Rupees five lakh only. As per a statement released by the RBI, consequent to the cancellation of its licence, The CKP Co-operative Bank Ltd., Mumbai, is prohibited from conducting the business of ‘banking’ which includes acceptance of deposits and repayment of deposits as defined in Section 5 (b) read with Section 56 of the Banking Regulation Act, 1949 with effect from the close of business on April 30, 2020.