The Reserve Bank of India has taken action against another cooperative bank in Maharashtra, ordering its complete closure. Following the decision, thousands of account holders have been unable to access their funds. The RBI cancelled the license of Jijamata Mahila Sahakari Bank in Satara, citing inadequate capital and a lack of earning prospects.
The Reserve Bank had previously cancelled the license of this cooperative bank on June 30, 2016, but later reinstated it on October 23, 2019, after the bank’s appeal. The RBI stated that authorities had ordered a forensic audit of the bank’s financial operations for 2013–14 to assess its financial health. However, despite appointing a forensic auditor, the audit could not be completed due to the bank’s lack of cooperation.
The RBI cancelled the license after assessing that the bank’s financial condition had been consistently worsening. The bank officially ceased operations on October 7, 2025, and has since stopped offering all banking services. The Registrar of Cooperative Societies in Maharashtra has been asked to shut down the bank and appoint a liquidator. Following the license cancellation, customers can no longer deposit or withdraw money from the bank.
The RBI stated that until the investigation is completed and the bank’s operations are restored, each depositor will be eligible to claim up to Rs 5 lakh on their deposits through the Deposit Insurance and Credit Guarantee Corporation (DICGC).
Explaining the reason for the cancellation of the license, the RBI said that the cooperative bank does not have sufficient capital and income potential. The central bank also said, “With the current financial situation, the bank will not be able to fully repay its existing depositors.”
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