New Delhi: The news of a big blow to the customers is coming from another co-operative bank. RBI has canceled the banking license of CKP Co-operative Bank Ltd. That means the bank is closing. According to RBI, the financial condition of the bank was bad and it was unable to continue. The bank did not even have a revival plan from the management and no merger was being done with anyone.
The bank was not adhering to the ability to keep minimum capital with it, it also did not have the reserve which should be according to the rules. That is, the capital adequacy ratio was not right and the minimum requirement of capital of 9 percent was not being followed. The bank was not able to give money to depositors in the present and future. This would have a bad effect on customers. The bank's management was biased.
The bank was given full time to strengthen its financial position but failed to do so. However, RBI said that customers can take a maximum amount of insurance up to Rs 5 lakh of their money under Deposit Insurance and Credit Guarantee Corporation (DICGC), in relation to the money being stuck.
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