The Reserve Bank of India has cancelled the licence of Jijamata Mahila Sahakari Bank, Satara (Maharashtra) as the lender does not have adequate capital and earning prospects.

The lender had run into trouble and its banking licence was cancelled vide an order dated 30 June 2016. But on appeal the bank’s licence was restored on 23 October 2019. 

In a statement, the RBI said 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.

The central bank had appointed a forensic auditor, but the audit could not be completed due to the non-cooperation of the bank, it said.

"Meanwhile, the financial position of the bank continued to deteriorate as assessed by RBI," it said while cancelling the licence.

The bank ceases to carry on banking business with effect from the close of business on 7 October 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.

"Consequent to the cancellation of its licence, Jijamata Mahila Sahakari Bank, Satara, Maharashtra is prohibited from conducting the business of 'banking' which includes, among other things, acceptance of deposits and repayment of deposits...with immediate effect," the RBI said.

On liquidation, every depositor would be entitled to receive deposit insurance claim amount of his/her deposits up to Rs 5 lakh from Deposit Insurance and Credit Guarantee Corporation (DICGC).

As on 30 September 2024, 94.41% of the total deposits were covered under DICGC insurance, the RBI said.

Giving reasons for cancellation, the RBI said the cooperative bank does not have adequate capital and earning prospects.

"The bank with its present financial position would be unable to pay its present depositors in full," it said.