The Reserve Bank of India has taken a big decision regarding a co-operative bank. The Reserve Bank on Tuesday announced that the license of Jijamata Mahila Sahakari Bank, based in Satara, Maharashtra, has been cancelled. The reason for this is that the co-operative bank lacks sufficient capital and prospects.
difficult forensic audit
The banking license of Jijamata Mahila Sahakari Bank was initially canceled by an order dated June 30, 2016. It was reinstated on October 23, 2019, following an appeal by the bank. The RBI said in a statement that the appellate authority had directed to conduct a forensic audit for the financial year 2013-14 to assess the financial position of the bank. The Reserve Bank had selected an auditor for this purpose, but the audit could not be completed due to lack of adequate cooperation from the bank.
When will banking start?
While canceling the license, the Reserve Bank said that based on the interim assessment, the financial position of the bank had deteriorated. With this decision of the Reserve Bank, the bank has closed its banking operations with effect from October 7, 2025. The Maharashtra Registrar of Cooperative Societies has been requested to issue a winding up order and appoint a liquidator for the bank. A liquidator is a person or entity appointed during the winding up process to sell a company’s assets to pay its creditors and distribute the remaining amount to shareholders. The liquidator manages the assets of the company.
This facility will be provided to the customers
The Reserve Bank has said that after the closure of banking operations, accepting deposits and repaying deposits, among other things, will remain prohibited. However, after liquidation, each depositor can claim insurance up to Rs 5 lakh on his deposits from the Deposit Insurance and Credit Guarantee Corporation (DICGC). The RBI said 94.41 per cent of total deposits were covered under DICGC insurance as of September 30, 2024.