The Reserve Bank of India (RBI) has cancelled the banking licence of Jijamata Mahila Sahakari Bank Ltd., Satara, Maharashtra, with effect from the close of business on October 7, 2025, as per its order dated October 6, 2025.

The bank’s licence had earlier been cancelled on June 30, 2016, but was restored on October 23, 2019, following an appeal. The Appellate Authority had directed a forensic audit for FY 2013-14 to assess the bank’s financial position. However, the audit could not be completed due to non-cooperation by the bank, and RBI noted a continued deterioration in its financial health.

The licence cancellation was necessitated on multiple grounds: the bank lacked adequate capital and earning prospects, failed to comply with statutory provisions under Sections 11(1) and 22 of the Banking Regulation Act, 1949, and its continuation was deemed prejudicial to the interests of depositors and public interest. With its current financial position, the bank would be unable to meet depositor obligations in full.

Following the cancellation, the bank ceases all banking operations, including accepting and repaying deposits, and the Registrar of Cooperative Societies, Maharashtra, has been requested to initiate the winding-up process and appoint a liquidator.

Depositors will be eligible to receive deposit insurance coverage up to ?5 lakh from the Deposit Insurance and Credit Guarantee Corporation (DICGC) under the DICGC Act, 1961. As of September 30, 2024, 94.41% of the bank’s total deposits were covered under DICGC insurance.