RBI Action: The Reserve Bank of India (RBI) has revoked the license of Jijamata Mahila Sahakari Bank. The central bank stated that the bank lacked sufficient capital. The bank’s license had been revoked previously but was later reinstated.
Bank License Canceled : The Reserve Bank of India (RBI) has cancelled the banking license of Jijamata Mahila Sahakari Bank, located in Satara, Maharashtra. This action was taken due to the bank’s poor financial condition and lack of earnings. The bank’s license was also revoked in 2016. It was then reinstated in 2019. However, the bank’s financial condition failed to improve, forcing the RBI to take this tough decision. This step was taken by the RBI to maintain the stability of the banking system.
People with accounts in this bank are currently facing difficulties. However, if you have a certain amount in your account, you can claim insurance on your funds. Let’s find out what will happen to your money deposited in this bank.
The bank’s condition continued to deteriorate. The RBI informed that the license of Jijamata Mahila Sahakari Bank was previously revoked on June 30, 2016. However, it was later reinstated on October 23, 2019, following the bank’s appeal. Following the reinstatement, the appellate authority directed a forensic audit of the financial year 2013-14 to assess the bank’s financial position. However, according to the RBI, this audit could not be completed due to the bank’s lack of cooperation. Meanwhile, the bank’s financial condition continued to deteriorate. The Reserve Bank stated, “During this period, the bank’s financial position continued to deteriorate.”
The bank will no longer be able to carry on any business. The RBI stated that the bank has been prohibited from carrying on any business from October 7, 2025. This means that the bank will no longer accept new deposits or make payments to anyone. The central bank has asked the Registrar of Cooperative Societies of Maharashtra to initiate the process of winding up the bank and appoint a liquidator.
Find out what will happen to your money.
The RBI stated that after the bank’s closure, each depositor will be paid an insurance claim of up to ₹5 lakh on their deposits through the Deposit Insurance and Credit Guarantee Corporation (DICGC). This means that your deposits up to ₹5 lakh in this bank are safe. You can claim up to ₹5 lakh. The RBI stated that as of September 2024, 94.41% of the bank’s deposits were covered under this insurance.
The bank’s continued operations would be detrimental.
The Reserve Bank of India has clarified that allowing the bank to continue its banking services would harm public interest on a large scale. Therefore, the decision to revoke the bank’s license was taken to prevent future financial irregularities. This step is a necessary measure to safeguard India’s financial system and protect the interests of its customers.
