99% depositors of CKP Co-op Bank to get their full deposits: RBI

Mumbai, May 3 (SocialNews.XYZ) In a major relief for the depositors in the now defunct CKP Co-operative Bank, a senior Reserve Bank of India (RBI) official on Sunday said that around 99.2 per cent of the bank's depositors will get their full deposits back from the Deposit Insurance and Credit Guarantee Corporation (DICGC).

The Registrar of Co-operative Societies, Pune, will next appoint a liquidator for starting the process in consultation with the DICGC.

The RBI official's assurance comes a day after the RBI announced the cancellation of the banking licence of Mumbai-headquartered co-operative bank, as its financial position had become unsustainable. The bank had a total of 1,32,170 depositors.

In a tweet on Sunday, Yogesh Dayal, Chief General Manager of the Department of Communication, RBI said: "CKP Co-op Bank Ltd., Mumbai has been under All Inclusive Directions of @RBI since 2014. As there was no scope for revival of the bank, its licence has been cancelled. Out of 132170 depositors of the bank, about 99.2% will get full payment of their deposits from DICGC."

The RBI on Saturday said that through an order dated April 28, it had 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.

As per central bank's statement on Saturday, the financial position of the bank is "highly adverse and unsustainable".

"There is no concrete revival plan or proposal for merger with another bank. Credible commitment towards revival from the management is not visible," the RBI statement said.

"The bank is not satisfying the requirement of minimum capital and reserves... and capital adequacy and earning prospects as stipulated in Section 22( 3)(d) of the Act and also stipulated minimum regulatory capital requirement of 9 per cent."

According to RBI, the bank is not in a position to pay its present and future depositors.

Source: IANS