RBI cancels the licence of The Shirpur Merchants’ Co-operative Bank Ltd., Shirpur

Case Brief

RBI cancelled the licence of The Shirpur Merchants’ Co-operative Bank Ltd., Shirpur under Section 22 read with Section 56 of the Banking Regulation Act, 1949. The cancellation was based on the bank’s inadequate capital and earning prospects, non-compliance with multiple statutory requirements under Sections 11(1) and 22(3), and RBI’s assessment that the bank’s continuance would harm depositors and the public interest. Following the cancellation, the bank is prohibited from carrying on banking business, including accepting and repaying deposits, with effect from the close of business on April 06, 2026, and the Registrar of Cooperative Societies, Maharashtra has been requested to initiate winding up and appoint a liquidator.