EconomyWednesday, 8 April 2026·The Hindu
RBI cancels Shirpur Merchants' Co-operative Bank licence; depositors covered up to ₹5 lakh under DICGC
RBI cancelled the licence of Shirpur Merchants' Co-operative Bank on April 6, 2026, citing weak capital and Banking Regulation Act non-compliance.
Key highlights
Direct fact
In April 2026, the Reserve Bank of India cancelled the banking licence of The Shirpur Merchants' Co-operative Bank in Maharashtra with effect from the close of business on April 6, 2026, after finding inadequate capital and earning prospects.
Key specifics
- The bank was barred from accepting and repaying deposits from April 6, 2026.
- Deposit insurance protection is available up to ₹5 lakh per depositor through DICGC.
- About 99.7% of the bank’s depositors are eligible to receive the full amount of their deposits.
- DICGC was established on July 15, 1978, under the DICGC Act, 1961.
- RBI was established on April 1, 1935, and nationalised on January 1, 1949.
Exam lens
Question type: banking regulation and deposit insurance, RBI action, DICGC ceiling ₹5 lakh, Banking Regulation Act, 1949. TNPSC one-liner: Which institution protects bank deposits up to ₹5 lakh when a co-operative bank licence is cancelled?