The Reserve Bank of India (RBI) on Tuesday, October 7, cancelled the banking license of Jijamata Mahila Sahakari Bank in Satara district of Maharashtra. The move comes as the cooperative bank lacked sufficient capital and income-generating capacity. Earlier, the bank’s license had been cancelled by an order dated June 30, 2016, but was restored on October 23, 2019, following the bank’s appeal. Meanwhile, the appellate authorities had directed a forensic audit of the bank for the financial year 2013-14 to assess its financial health.
Forensic Audit Not Completed
The RBI had appointed a forensic auditor, but the audit could not be completed due to the bank’s non-cooperation. While cancelling the license, the RBI stated: “According to the assessment, the financial condition of the bank has been continuously deteriorating.” The bank ceased its banking operations after working hours on October 7, 2025.
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The Registrar of Cooperative Societies, Maharashtra, has also been requested to close the bank and appoint a liquidator.
Depositors Cannot Access Funds
“Due to the cancellation of its license, Jijamata Mahila Sahakari Bank, Satara, Maharashtra, is prohibited from carrying on any banking business with immediate effect. This includes accepting deposits and repaying deposits,” the RBI said. In the event of liquidation, depositors will be entitled to receive deposit insurance and claims under the DICGC up to Rs 5 lakh per depositor.
Bank Unable to Pay Depositors in Full
The RBI clarified that as of September 30, 2024, 94.41% of the total deposits were covered under DICGC insurance. The decision to cancel the license was taken due to insufficient capital and limited income potential. “Given the financial condition of the bank, it will be unable to pay its existing depositors in full. Allowing the bank to continue operations would adversely impact public interest,” the RBI added.