The Reserve Bank of India (RBI) has cancelled the licence of Shirpur Merchants Co-operative Bank in Maharashtra, effective April 6, 2026, due to concerns over its financial health. The RBI stated that the bank lacks adequate capital and viable earning prospects, making it unable to repay depositors fully. Consequently, the bank has ceased all operations and is prohibited from conducting any banking activities, including accepting or repaying deposits. The RBI has instructed the Commissioner for Cooperation and the Registrar of Cooperative Societies in Maharashtra to initiate the winding-up process and appoint a liquidator. For depositors, the Deposit Insurance and Credit Guarantee Corporation (DICGC) provides insurance coverage of up to ₹5 lakh (approximately $6,000 USD) per depositor. According to RBI data, around 99.7% of depositors are expected to receive their full deposits under this insurance scheme, with ₹48.95 crore already disbursed to insured depositors as of January 31, 2026.