The Bombay HC last week refused to stay a decision of the RBI to cancel licence of city-based CKP Co-operative Bank Ltd and observed that the steps taken by the banking regulator are for the benefit of depositors and that the scope of writ courts to interfere in such decisions of RBI was “extremely narrow”.
A division bench of Justices Nitin M Jamdar and Surendra P Tavade passed an order through video conference on June 19 on two pleas filed by Arun T Dhumale and Vishwas Utagi, convenors of ‘Save CKP Co-op Bank Kriti Samiti,’ which consists of around 500 people including members, shareholders, account holders, depositors, and employees of the bank.
The pleas challenged the RBI’s decision to cancel licence with effect from close of business on April 30, 2020, citing that the bank’s position had worsened.
The bench led by Justice Jamdar said the RBI was entrusted to take necessary action in the interest of depositors and noted, “The scope of interference of writ courts in such decisions of the RBI is extremely narrow. The steps taken by the RBI are for the benefit of the depositors.”
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