- The Reserve Bank announced on Tuesday that it has revoked the licence of Jijamata Mahila Sahakari Bank in Satara, Maharashtra, citing insufficient capital and poor earning prospects as the main reasons.
- This isn’t the first time the bank has faced such scrutiny; its banking licence was initially cancelled on June 30, 2016, but was reinstated on October 23, 2019, following an appeal.
- In its statement, the RBI mentioned that the Appellate Authority, which had approved the appeal, ordered a forensic audit of the bank for the fiscal year 2013-14 to evaluate its financial health.
- Although a forensic auditor was appointed, the audit could not be finalized due to the bank’s lack of cooperation, according to the RBI.
- “Meanwhile, the bank’s financial situation continued to worsen, as assessed by the RBI,” the statement noted while announcing the licence cancellation.
The Reserve Bank announced on Tuesday that it has revoked the licence of Jijamata Mahila Sahakari Bank in Satara, Maharashtra, citing insufficient capital and poor earning prospects as the main reasons.
This isn’t the first time the bank has faced such scrutiny; its banking licence was initially cancelled on June 30, 2016, but was reinstated on October 23, 2019, following an appeal.
In its statement, the RBI mentioned that the Appellate Authority, which had approved the appeal, ordered a forensic audit of the bank for the fiscal year 2013-14 to evaluate its financial health.
Although a forensic auditor was appointed, the audit could not be finalized due to the bank’s lack of cooperation, according to the RBI.
“Meanwhile, the bank’s financial situation continued to worsen, as assessed by the RBI,” the statement noted while announcing the licence cancellation.
As of the close of business on October 7, 2025, the bank will no longer be able to operate.
The Registrar of Cooperative Societies in Maharashtra has also been asked to issue a winding-up order for the bank and appoint a liquidator.
“Following the cancellation of its licence, Jijamata Mahila Sahakari Bank in Satara, Maharashtra, is now prohibited from engaging in any banking activities, which includes accepting and repaying deposits… effective immediately,” the RBI stated.
In the event of liquidation, every depositor will be eligible to receive an insurance claim of up to Rs 5 lakh from the Deposit Insurance and Credit Guarantee Corporation (DICGC) for their deposits.
As of September 30, 2024, 94.41 percent of the total deposits were insured under DICGC coverage, according to the RBI.
The RBI explained that the cooperative bank lacks sufficient capital and earning potential.
“Given its current financial state, the bank would be unable to fully repay its depositors,” it added.
The RBI emphasized that allowing the bank to continue its operations would negatively impact public interest.