The Bombay High Court recently upheld the decision of the RBI to wind up the CKP Bank, the oldest urban cooperative bank. The court said the RBI had given sufficient time to CKP bank to improve itself, reports Free Press Journal.
The court asked the apex bank to act as the strongest watch dog to oversee the affairs of a bank. It is worth noting that the RBI had last year ordered the Registrar of Cooperative Societies to wind up the CKP Bank.
Commenting on the bank, the RBI had said, the bank’s financial position was adverse and unsustainable. The CKP bank had petitioned the court seeking to quash the RBI decision.