RBI Cancels Licence Of Shirpur Merchants' Co-op Bank

The RBI on Monday said it has cancelled the licence of The Shirpur Merchants' Co-operative Bank as the lender does not have adequate capital and earning prospects.

Consequently, the bank ceases to carry on banking business, with effect from the close of business on April 6, 2026, the Reserve Bank said in a statement.

The Commissioner for Cooperation, Registrar of Cooperative Societies, Maharashtra has also been requested to issue an order for winding up the bank and appoint a liquidator.

On liquidation, every depositor would be entitled to receive deposit insurance claim amount of his/her deposits up to Rs 5 lakh from Deposit Insurance and Credit Guarantee Corporation (DICGC).

The RBI said that as per the data submitted by the co-operative bank, about 99.7 per cent of the depositors are entitled to receive full amount of their deposits from DICGC.

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As on January 31, 2026, DICGC has already paid Rs 48.95 crore of the total insured deposits based on the willingness received from the depositors concerned.

Giving details about the cancellation of the licence, RBI said the lender does not have adequate capital and earning prospects and with its present financial position it would be unable to pay its present depositors in full.

"The continuance of the bank will be prejudicial to the interests of its depositors," the central bank said.

Consequent to the cancellation of its licence, The Shirpur Merchants' Co-operative Bank is prohibited from conducting the business of banking which includes, among other things, acceptance of deposits and repayment of deposits with immediate effect, it said.

(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)

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