The Shirpur Merchants’ Co-operative Bank Ltd

RBI cancelled the licence of The Shirpur Merchants’ Co-operative Bank Ltd., Shirpur. The bank must stop banking business and liquidation proceedings are to follow.

The bank cannot conduct banking business any further, including accepting or repaying deposits. Winding-up/liquidation is expected to follow, and depositors may claim deposit insurance up to the statutory ceiling, subject to DICGC rules; RBI noted that about 99.7% of depositors are entitled to receive their full deposit amounts from DICGC based on the bank’s submitted data.

• Section 22 read with Section 56 of the Banking Regulation Act, 1949
• Section 11(1)
• Section 22(3)(d) read with Section 56 of the Banking Regulation Act, 1949

+3 more in the case brief

RBI has extended its existing Section 35A/Section 56 directions on The Shirpur Merchants’ Co-operative Bank Ltd. for another three months. The terms of the directive remain unchanged.

The bank continues to operate under the same RBI-imposed restrictions until April 08, 2026, subject to review. Depositors, customers, and counterparties remain affected by the unchanged conditions of the directive during the extended period.

• Section 35A read with Section 56 of the Banking Regulation Act, 1949
• sub-section (1) of Section 35A read with Section 56 of the Banking Regulation Act, 1949

RBI has extended its existing directions on Shirpur Merchants’ Co-operative Bank Ltd. for another three months. The terms of the directive remain unchanged.

The bank continues to operate under the same RBI-imposed restrictions through January 08, 2026, unless further modified or withdrawn. Customers and counterparties remain subject to the operational constraints already in force under the directive.

• Section 35A read with Section 56 of the Banking Regulation Act, 1949
• sub-section (1) of Section 35A read with Section 56 of the Banking Regulation Act, 1949

RBI has extended the existing Section 35A directions against The Shirpur Merchants’ Co-operative Bank Ltd. for another three months. The earlier terms continue unchanged.

The bank must continue complying with the existing RBI directions through October 08, 2025, subject to further review. The extension keeps the operational restrictions in force for the bank and any affected customers until the directive is modified or withdrawn.

• Section 35A read with Section 56 of the Banking Regulation Act, 1949
• sub-section (1) of Section 35A read with Section 56 of the Banking Regulation Act, 1949

RBI has extended the existing Section 35A directions on Shirpur Merchants’ Co-operative Bank Ltd. for another three months. The earlier terms remain unchanged.

The bank remains subject to the same RBI restrictions for the extended period, with the directive continuing unchanged through July 08, 2025. Customers and counterparties are affected to the extent of the existing operating constraints under the Section 35A directions.

• Section 35A read with Section 56 of the Banking Regulation Act, 1949
• sub-section (1) of Section 35A read with Section 56 of the Banking Regulation Act, 1949

RBI has extended its existing Directions against The Shirpur Merchants’ Co-operative Bank Ltd., Shirpur, Maharashtra. The order now continues until the close of business on April 08, 2025.

The bank must continue operating under the existing RBI directions through April 08, 2025, subject to review. The underlying restrictions remain in place, affecting the bank’s operations and, depending on the directive’s terms, its customers and counterparties, until RBI changes or withdraws the order.

• Section 35A read with Section 56 of the Banking Regulation Act, 1949
• sub-section (1) of Section 35A read with Section 56 of the Banking Regulation Act, 1949

RBI has extended its existing directions against The Shirpur Merchants’ Co-operative Bank Ltd. for another three months. The order remains in force unchanged until January 08, 2025, subject to review.

The bank must continue complying with the RBI directive for the extended period through January 08, 2025, subject to review. Any operational constraints already imposed under the directive continue to apply to the bank, affecting its business until the order is changed or allowed to lapse.

• Section 35A read with Section 56 of the Banking Regulation Act, 1949

RBI placed The Shirpur Merchants’ Co-operative Bank Ltd., Shirpur under Section 35A directions restricting most core banking activities. Depositor withdrawals are also capped, subject to specified conditions.

The bank must operate under tight RBI-imposed restrictions for six months unless modified or reviewed earlier. Core activities such as lending, fresh deposits, borrowing, asset disposal, and most payouts are curtailed, and depositors face withdrawal limits subject to the stated conditions and DICGC insurance claim eligibility up to Rs 5 lakh. The restrictions affect the bank, its borrowers, depositors, and counterparties.

• Section 35A of the Banking Regulation Act, 1949
• Section 56 of the Banking Regulation Act, 1949
• Section 18A of the DICGC Act (amendment) 2021