Alert! Reserve Bank Cancels Licence of Jijamata Mahila Sahakari Bank in Maharashtra
Alert! Reserve Bank Cancels Licence of Jijamata Mahila Sahakari Bank in Maharashtra
RBI cites poor financial health, lack of cooperation in forensic audit, and capital inadequacy as key reasons behind the move.
The Reserve Bank of India (RBI) has cancelled the banking licence of Jijamata Mahila Sahakari Bank, Satara (Maharashtra), citing poor financial condition, lack of sufficient capital, and the bank’s failure to maintain earning prospects. The central bank, in an official statement issued on Tuesday, said the lender’s financial position had deteriorated further due to non-cooperation during a forensic audit ordered to assess its financial health.
The RBI clarified that with the licence cancellation, the cooperative bank is now prohibited from conducting any banking business, including accepting or repaying deposits, effective from the close of business on October 7, 2025.
This is not the first time the bank has faced such action. Its licence was earlier cancelled on June 30, 2016, but later restored on October 23, 2019, following an appeal. At that time, the appellate authority had directed the bank to undergo a forensic audit for FY 2013–14 to evaluate its financial position. However, the RBI stated that the audit “could not be completed due to non-cooperation from the bank,” and in the meantime, its financial situation worsened.
“The bank, with its present financial position, would be unable to pay its depositors in full,” the RBI noted. It further added that allowing the bank to continue operations would be “prejudicial to the interests of its depositors and public confidence in the cooperative banking system.”
Following the cancellation, the RBI has requested the State Cooperative Commissioner and Registrar of Cooperative Societies to initiate liquidation proceedings and appoint a liquidator.
According to the bank’s submitted data, 94.41 per cent of total depositors will be eligible to receive the full value of their deposits — up to Rs 5 lakh — from the Deposit Insurance and Credit Guarantee Corporation (DICGC). As of September 30, 2024, the DICGC has already settled claims amounting to Rs 230.16 crore to eligible depositors.
The central bank reaffirmed that the decision was made to safeguard depositors’ interests and maintain the stability of the cooperative banking sector.
