In Maharashtra, another co-operative is facing a crisis threat. The Reserve Bank of India has canceled the license of the CKP Co-operative Bank. The RBI has taken this decision due to financial overrides on this co-operative bank in Maharashtra.
Since April 30, the RBI has stopped all operations in the bank. The decision was taken by the Reserve Bank to save the investors’ decision. RBI has directed the registrar of co-operative societies of Pune to issue orders to check all cases of the bank.
RBI has sought the appointment of liquidator for the bank. RBI has canceled the bank’s license on the basis of financial instability. The bank is facing adverse conditions and is reeling under financial crisis.
Sources associated with the Reserve Bank of India claim that the bank is no longer in a position to refund the money of its existing and future depositors. Now, as per RBI restrictions, CKP Co-operative Bank Limited will not be able to perform any banking operations. The Reserve Bank of India has banned deposits and repayment of deposits in the bank.
PMC Bank has also been banned
Earlier, RBI had taken action against Punjab and Maharashtra Co-operative (PMC) Bank. The Reserve Bank of India (RBI) had imposed a number of restrictions on Punjab and Maharashtra co-operative (PMC) bank. The action was taken by RBI under Section 35A of the Banking Resolution Act, 1949.
Impact on customers
The RBI’s decision may aggravate the problems faced by the customers of the CKP Co-operative Bank. No new fixed deposit account will be opened in the bank. In addition, the bank has also banned the issuance of new loans.
Gracia is a senior writer at Get Ignite, where she covers media and advertising and co-hosts the Original Content podcast. Previously, she worked as a tech writer at Adweek, a senior editor at the tech blog VentureBeat, and a local government reporter at the Hollister Free Lance. She attended Stanford University and now lives in Brooklyn.