India's RBI cancels licence of Shirpur Merchants Co-operative Bank
Shirpur branch managers cannot accept or repay deposits
Change
India's RBI cancelled the licence of The Shirpur Merchants Co-operative Bank Ltd., effective with the bank ceasing banking operations at the close of business on April 6, 2026, and prohibited it from accepting or repaying deposits.
Why it matters
Depositors cannot obtain repayments directly from the bank; claims must be processed through a formal liquidation. Payment and settlement instructions to the bank cannot be executed via normal banking channels while the licence cancellation remains in force.
Implications
- — Payment operations teams at banks, payment processors, and clearing/settlement participants with queued instructions to The Shirpur Merchants Co-operative Bank Ltd. must halt and reconcile outgoing transfers to the bank immediately — processed transfers risk failing or becoming irrecoverable because the bank is barred from banking operations.
- — Branch managers and deposit-acceptance staff of The Shirpur Merchants Co-operative Bank Ltd. must stop accepting deposits and cease repayment transactions immediately — continuing to transact will contravene the RBI cancellation order and expose them to regulatory enforcement.
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Source
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