CKP Co-Op Bank's depositors to get full repayment

Mumbai, May 4: The Reserve Bank of India (RBI) on Monday said that over 99 per cent of CKP Co-Op Bank's 1.32 lakh depositors would get full money through Deposit Insurance and Credit Guarantee Corporation (DICGC). RBI's chief general manager in the Department of Communication, Yogesh Dayal, noted that the CKP co operative bank had been under all inclusive directions that had restricted its activities since 2014 itself, and the decision to cancel the license was taken as there was no scope for its revival.

 

 

In its order cancelling the license of CKP Bank, the RBI said the cooperative bank is not satisfying the stipulated minimum regulatory capital requirement of 9 per cent and the financial position of the bank is highly adverse and unsustainable.

 

The Registrar of Co-operative Societies, Pune has been asked to issue an order for winding up the affairs of the CKP Co-operative Bank and appoint a liquidator for the bank, as per the RBI notification. The RBI action on the bank had come over seven months after it placed the city-based Punjab and Maharashtra Co-operative Bank under directions in September last year due to financial mismanagement by officials.

 

PMC was one of the largest banks in the space, and the directions, which include capping of deposit withdrawals, had led to protests by the depositors. The RBI further noted that on liquidation, every depositor is entitled to repayment of his/her deposits up to a monetary ceiling of 5 lakh rupees from the DICGC as per usual terms and conditions.