The RBI has cancelled the license of Jijamata Mahila Sahakari Bank, located in Satara, Maharashtra. Due to the bank's insufficient capital and lack of earning prospects, customers will now neither be able to deposit money nor withdraw it. Under the DICGC insurance, depositors will be able to receive an amount up to a maximum of Rs 5 lakh.
Banking License: The Reserve Bank of India (RBI) has cancelled the banking license of Jijamata Mahila Sahakari Bank, located in Satara, Maharashtra. This step was taken due to the bank's inadequate capital and lack of earning prospects. As of October 7, 2025, banking operations have ceased, meaning customers will neither be able to deposit nor withdraw money. The RBI stated that during liquidation, depositors will be able to receive an amount up to a maximum of Rs 5 lakh under the DICGC insurance.
Why the RBI Took This Step
The RBI stated that the bank's financial condition was continuously deteriorating. The bank also failed to cooperate with the Reserve Bank's forensic audit, due to which the audit could not be completed. The bank's banking license was previously cancelled on June 30, 2016, but was reinstated on October 23, 2019, following the bank's appeal. This time, based on the bank's current situation and audit report, the decision was made to cancel the license again.
The RBI stated that the bank not only lacks adequate capital but also has no prospects for future earnings. If the bank had been allowed to continue its banking operations, it would have negatively impacted the interests of the general public and depositors.
Ban on Banking Operations
The RBI clarified that banking operations have completely ceased as of October 7, 2025. Under this, the bank is prohibited from accepting deposits and repaying deposited amounts. During the liquidation process, each depositor will be able to receive a claim amount of up to Rs 5 lakh on their deposits under the Deposit Insurance and Credit Guarantee Corporation (DICGC).
As of September 30, 2024, 94.41 percent of the bank's total deposits were covered under DICGC insurance. The RBI stated that the bank would be unable to repay the full amount of its existing deposits. This is why it has now become necessary to close the bank.
Non-cooperation in Forensic Audit
The RBI had previously appointed a forensic auditor to conduct a detailed audit of the bank for the financial year 2013-14. However, due to the bank's non-cooperation, the audit could not be completed. The Reserve Bank stated that the audit report revealed the bank's financial condition was continuously weakening.
Irregularities in the bank's operations and a weak capital structure indicated that allowing the bank to continue its business would not be in the public interest. Therefore, the RBI took the step to cancel the license.
Bank's Previous Status and History
Jijamata Mahila Sahakari Bank, Satara, Maharashtra, has a history marked by several ups and downs. Its license has been cancelled and reinstated before. The bank's financial situation and capital deficiency consistently created crises. The RBI had issued repeated warnings, but due to a lack of improvement, the license ultimately had to be cancelled.
