RBI Cancels Shirpur Merchants Co-op Bank Licence

The Reserve Bank of India has cancelled the licence of The Shirpur Merchants' Co-operative Bank, making it unable to continue banking business from the close of business on April 6. The RBI said the bank does not have adequate capital and earning prospects and would be unable to pay present depositors in full in its current financial position. For depositors, the key detail is deposit insurance. On liquidation, every depositor is entitled to receive deposit insurance claim amount up to Rs 5 lakh from the Deposit Insurance and Credit Guarantee Corporation, subject to rules. Reports say around 99.7 percent of the bank's depositors are entitled to receive the full amount of their deposits from DICGC, based on data submitted by the bank. The RBI has asked the Maharashtra cooperative authorities to issue winding-up and liquidator orders. Editors should verify if the bank or registrar issues local instructions for claim processing, because depositors will need clear next steps.