RBI Cancels Shirpur Merchants’ Co-op Bank Licence Over Poor Finances
In April 2026, the Reserve Bank of India (RBI) cancelled the licence of Maharashtra’s Shirpur Merchants’ Co-operative Bank Limited over inadequate capital and poor earning prospects, under Section 22 read with Section 56 of the Banking Regulation (BR) Act, 1949.
In April 2026, the Reserve Bank of India (RBI) cancelled the licence of Maharashtra’s Shirpur Merchants’ Co-operative Bank Limited over inadequate capital and poor earning prospects, under Section 22 read with Section 56 of the Banking Regulation (BR) Act, 1949.
- As per RBI, the co-operative bank will cease all banking activities from the close of business on April 06, 2026.
Key Details:
Key Reasons: RBI in its official order specified the key reasons for the cancellation of licence like: the lender failed to comply with several provisions of the BR Act, 1949, including requirements related to capital adequacy and operational conditions for banking institutions.
Liquidation: The RBI has also requested the Commissioner for Cooperation and Registrar of Cooperative Societies, Maharashtra, to initiate the bank’s winding-up process and appoint a liquidator.
Depositor Insurance: As per RBI directions, every depositor will receive deposit insurance claim amount of his or her deposits of maximum Rs 5 lakh from Deposit Insurance and Credit Guarantee Corporation (DICGC), subject to the provisions of DICGC Act, 1961.
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- As of January 31, 2026, DICGC had insured deposits worth Rs 48.95 crore.
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