**Executive Summary**
The Reserve Bank of India (RBI) has cancelled the license of Jijamata Mahila Sahakari Bank Ltd., Satara, Maharashtra, effective October 07, 2025. This action follows the bank's failure to comply with regulatory requirements and a continued deterioration of its financial position, despite a previous appeal and directed forensic audit. The Registrar of Cooperative Societies, Maharashtra has been requested to wind up the bank.
**Key Points / Main Content**
* **License Cancellation:**
* The RBI cancelled the bank's license effective October 07, 2025.
* The bank's license had been previously cancelled and restored after an appeal, with the condition of a forensic audit.
* **Reasons for Cancellation:**
* The bank does not have adequate capital and earning prospects in compliance with regulatory provisions.
* The bank failed to comply with the requirements of Sections 22(3)(a), 22(3)(b), 22(3)(c), 22(3)(d) and 22(3)(e) read with Section 56 of the Banking Regulation Act, 1949.
* The continuation of the bank is prejudicial to the interests of depositors.
* The bank's present financial position renders it unable to pay depositors in full.
* Public interest would be adversely affected if the bank continues banking business.
* **Prohibition of Banking Activities:**
* The bank is prohibited from conducting 'banking' business, including acceptance and repayment of deposits, as defined by the Banking Regulation Act, 1949, with immediate effect.
* **Liquidation and Deposit Insurance:**
* On liquidation, depositors are entitled to receive deposit insurance claims up to ₹5,00,000 from the DICGC, subject to the provisions of the DICGC Act, 1961.
* As of September 30, 2024, 94.41% of total deposits were covered under DICGC insurance.
* **Winding Up:**
* The Registrar of Cooperative Societies, Maharashtra, is requested to issue an order for winding up the bank and appoint a liquidator.
**Impact Analysis**
**Impact**
**Jijamata Mahila Sahakari Bank Ltd.**
The bank is no longer authorized to conduct banking activities.
**Action Required**
Cease all banking operations immediately.
**Impact**
**Depositors**
Depositors will not be able to access their funds through the bank.
**Action Required**
File claims with the DICGC to receive insured deposits up to ₹5,00,000.
**Impact**
**Registrar of Cooperative Societies, Maharashtra**
The Registrar of Cooperative Societies, Maharashtra, has been requested to wind up the bank and appoint a liquidator.
**Action Required**
Issue an order for winding up the bank and appoint a liquidator.
Key Entities Referenced
Reserve Bank of India (RBI): The regulator that cancelled the banking license.
Jijamata Mahila Sahakari Bank Ltd., Satara, Maharashtra: The bank whose license was cancelled.
Banking Regulation Act, 1949: The act cited for violations, leading to the license cancellation.
Deposit Insurance and Credit Guarantee Corporation (DICGC): The corporation providing deposit insurance, referenced in the context of liquidation.
DICGC Act, 1961: The act governing deposit insurance, referenced in the context of liquidation.
प्रेस प्रकाशनी PRESS RELEASE
भारतीय ररज़र्व बैंक
RESERVE BANK OF INDIA
वेबसाइट
:
www.rbi.org.in/hindi
संचार वर्भाग, केंद्रीय कायाालय, शहीद भगत ससिंह मागा, फोटा, म िंबई - 400 001
Website : www.rbi.org.in Department of Communication, Central Office, Shahid Bhagat Singh Marg, Fort,
ई-मेल/email : helpdoc@rbi.org.in Mumbai - 400 001 फोन/Phone: 022 - 2266 0502
October 07, 2025
RBI cancels the licence of Jijamata Mahila Sahakari Bank Ltd., Satara,
Maharashtra
The Reserve Bank of India (RBI), vide order dated October 06, 2025, has cancelled
the licence of “Jijamata Mahila Sahakari Bank Ltd., Satara, Maharashtra.” The banking
licence of the bank was earlier cancelled vide order dated June 30, 2016 and was
restored on October 23, 2019 on an appeal made by the bank. The Appellate Authority,
which allowed the appeal, directed that a forensic audit of the bank be conducted for
the FY 2013-14 to assess the financial position. RBI appointed a forensic auditor, but
the audit could not be completed due to the non-cooperation of the bank. Meanwhile,
the financial position of the bank continued to deteriorate as assessed by RBI.
The Reserve Bank has therefore cancelled the licence of the bank as:
i) The bank does not have adequate capital and earning prospects. As such, it does
not comply with the provisions of Section 11(1) and Section 22 (3)(d) read with
Section 56 of the Banking Regulation Act, 1949.
ii) The bank has failed to comply with the requirements of Sections 22(3)(a),
22(3)(b), 22(3)(c), 22(3)(d) and 22(3)(e) read with Section 56 of the Banking
Regulation Act, 1949;
iii) The continuance of the bank is prejudicial to the interests of its depositors;
iv) The bank with its present financial position would be unable to pay its present
depositors in full; and
v) Public interest would be adversely affected if the bank is allowed to carry on its
banking business any further.
2. Consequently, the bank ceases to carry on banking business with effect from
the close of business on October 07, 2025. The Registrar of Cooperative
Societies, Maharashtra has also been requested to issue an order for winding up
the bank and appoint a liquidator for the bank.
3. Consequent to the cancellation of its licence, “Jijamata Mahila Sahakari Bank Ltd.,
Satara, Maharashtra” is prohibited from conducting the business of ‘banking’ which
includes, among other things, acceptance of deposits and repayment of deposits as
defined in Section 5(b) read with Section 56 of the Banking Regulation Act, 1949 with
immediate effect.
4. On liquidation, every depositor would be entitled to receive deposit insurance claim
amount of his/her deposits up to a monetary ceiling of ₹5,00,000/- (Rupees five lakh
only) from Deposit Insurance and Credit Guarantee Corporation (DICGC) subject to
the provisions of DICGC Act, 1961. As on September 30, 2024, 94.41% of the total
deposits were covered under DICGC insurance.
(Brij Raj)
Press Release: 2025-2026/1264 Chief General Manager