India, April 7 -- The Reserve Bank of India has cancelled the licence of The Shirpur Merchants' Co-operative Bank Ltd., effective from the close of business on April 6, 2026.
Following the cancellation, the bank is prohibited from conducting any banking activities, including acceptance and repayment of deposits. The authorities have also been directed to initiate winding-up proceedings and appoint a liquidator.
The RBI cited multiple reasons for the action, including:
Inadequate capital and poor earning prospects
Failure to comply with key regulatory requirements under the Banking Regulation Act, 1949
The bank's continued operations being detrimental to depositors' interests
Inability to fully repay depositors in its current financial co...