RBI reasoned that the bank’s financial situation is extremely negative and unsustainable. There is no specific resuscitation plan or proposal for merger with another bank. Credible commitment to revival by management is not visible, the central bank observed.
With license cancellation and commencement of liquidation procedure, the payment process depositors from the CCP cooperative Bank Ltd., Mumbai, under the DICGC Act, 1961, will be put into action. Upon liquidation, any depositor is entitled to repay his / her deposit up to a monetary ceiling of Rs 5,00,000 from Deposit Insurance and Credit Guarantee Corporation (DICGC) as usual terms and conditions.
“The bank’s affairs were and are being conducted in a detrimental way to the interests and interests of depositors and that the general nature of the bank’s management is detrimental to depositors’ interests as well as public interests,” said the RBI.
“The financial situation of the bank is very negative and unsustainable. There is no concrete revival plan or proposal for merger with another bank. Credible commitment to revival by management is not visible,” the RBI said in a statement.
“The bank’s effort for revitalization has far from been sufficient, although the bank has had ample time and opportunity and exemptions. No merger proposal has been received with respect to the bank. Therefore, the probability that the public interest would be adversely affected if the bank received allowed to continue its business, ”RBI added
Accordingly, upon liquidation, each depositor is entitled to repay his / her deposit up to a monetary ceiling of Rs 5 lakh from the DICGC.
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