RBI cancels Shirpur Merchants's Cooperative Bank license over insolvency

Business Apr 06, 2026

The Reserve Bank of India has canceled Shirpur Merchants's Cooperative Bank's license, saying the bank just does not have enough money to keep going.
From the close of business on April 6, 2026, all banking operations will stop for good.
The RBI has asked Maharashtra officials to begin winding things up and bring in a liquidator to handle what is next.

DICGC to refund 99.7% depositors

Here is some relief: under the DICGC insurance scheme, 99.7% of depositors will get their entire amount back (up to ₹5 lakh each).
By January this year, over ₹48 crore had already been paid out to those who claimed it.
The RBI pointed out that letting the bank keep running would only hurt customers more since it cannot pay everyone back in full.