Mumbai, May 4 (TIWN) The Reserve Bank of India has cancelled the banking licence of CKP Co-operative Bank, as its financial position has become unsustainable.

In its order, the central bank has maintained that the CKP Co-operative Bank Ltd was not in a position to pay its present and future depositors due to its financial instability.

In a statement on Saturday, the RBI said, "The CKP Co-operative Bank Ltd., Mumbai, is prohibited from conducting the business of ‘banking’ which includes acceptance of deposits and repayment of deposits."

The Registrar of Co-operative Societies, Pune, Maharashtra, has also been requested to issue an order for winding up the affairs of CKP Co-operative Bank Ltd. and appoint a liquidator for the bank.

The RBI said, "The financial position of the bank is highly adverse and unsustainable. There is no concrete revival plan or proposal for merger with another bank. Credible commitment towards revival from the management is not visible."

"The bank is not satisfying the requirement of minimum capital and reserves....The bank is not in a position to pay its present and future depositors, thereby not complying with Section 22(3) (a) read with Section 56 of the Act," the RBI said.