Current Context: The Reserve Bank of India (RBI) cancelled the license ofCKP Co-operative Bank Ltd., Mumbai,to carry on banking business, with effect from April 30, 2020.
- The bank is prohibited from the business of ‘banking’ including acceptance and repayment of deposits.
- RBI has also asked the Registrar of Co-operative Societies, Pune, Maharashtra, to issue an order for winding up the affairs of the CKP Co-operative Bank Ltd., Mumbai, and appoint a liquidator for the bank.
- This move of RBI has been taken on CKP Co-operative Bank Ltd., Mumbai, because of the adverse and unsustainable financial condition of the bank, as it was not meeting the minimum capital and reserves.
- Also, RBI found thatthe 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. Thus, the bank was not following provisions of Section 22 (3)(b) and (c) of the Act. And hence, the license of CKP Co-operative Bank Ltd., Mumbai, was cancelled.
Static Part:
- Headquarters of RBI– Mumbai, Maharashtra
- Governor of RBI – Shaktikanta Das
- Deputy Governors of RBI– Bibhu Prasad Kanungo, Mahesh Kumar Jain, Michael Debabrata Patra.
