RBI Cancels Licence CKP Co-operative Bank

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Cooperative bank is governed by both banking and cooperative legislation, as they are registered under the Cooperative Society Act, 1965
And regulated by National Bank for Agriculture and Rural Development (NABARD) & Reserve Bank of India (RBI).
Banking laws were made applicable to cooperative societies in 1966 through an amendment to the Banking Regulation Act, 1949.
Since then, banking related functions are regulated by the RBI
And management related functions are regulated by respective State Governments.
UCBs- 86 million depositors Total around ₹5 trillion.

Its gross non-performing assets increased to 96.83%

DEPOSITORS MONEY AFTER LIQUIDATION

CKP Bank’s former director Rajendra Phanse said, “The RBI’s action is too harsh and untimely.
We will challenge it before the Finance Minister within 30 days as per the Banking Regulation Act’s provision.”

The recruitment for the banks’ management will be based on certain qualifications.
Appointment of the chief executive officer (CEO) will require prior permission from the banking regulator, as in case of other commercial banks.
The audit of such banks will be as per the RBI
Also central bank can supersede the board, in consultation with the state government, if any co- operative bank is under stress.
To strengthen the co-operative banks, amendments to the Banking Regulation Act are proposed for-
Increasing professionalism,
Improving governance & oversight for sound banking through the RBI.
RBI had said in its recent report,
Urban co-operative banks reported nearly 1,000 fraudulent cases worth more than ₹220 crores in the last five fiscals.