InvestorQ : With RBI cancelling the banking license of CKP Bank, what is the fate of the depositors of the bank?
Mary Joseph made post

With RBI cancelling the banking license of CKP Bank, what is the fate of the depositors of the bank?

Answer
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sara Kunju answered.
5 months ago


This is actually an old case and the problems at the bank were first highlighted by RBI back in 2014. The bank was then put on the watch list. Seeing no hopes of any revival, the RBI has now cancelled the license of CKP Bank over stability concerns. In fact, the Registrar of Cooperative Societies has been asked to initiate the liquidation process. But depositors may not have much to worry about. Nearly 99.2% of the depositors of the bank will get their full deposits back and such payment will be routed through the Deposit Insurance Credit Guarantee Corporation (DICGC), which insures bank deposits up to Rs.5 lakhs. The bank has a deposit base of Rs.485 crore with branches focussed in Mumbai and Thane districts. Of course, the actual disbursal and realization of these monies will take some time.