Just days before Diwali, the Reserve Bank of India (RBI) has taken a major step by cancelling the banking license of Jijamata Mahila Sahakari Bank, located in Satara, Maharashtra. The decision was announced on Tuesday, citing the bank’s inability to maintain adequate capital and generate sustainable earnings. This move has left many account holders anxious about the safety of their deposits.
Interestingly, this isn’t the first time the bank’s license was revoked. Back in June 2016, RBI had cancelled the license, which was later reinstated in October 2019 after an appeal. However, the appellate authority had directed a forensic audit of the bank’s financials for the fiscal year 2013–14. Despite appointing an auditor, the audit couldn’t be completed due to lack of cooperation from the bank.
On October 7, 2025, the bank officially ceased its banking operations. RBI has requested the Registrar of Cooperative Societies in Maharashtra to initiate the bank’s closure and appoint a liquidator.
So, what happens to your money?
Following the cancellation, the bank is prohibited from accepting deposits or repaying existing ones. However, depositors need not panic. As per RBI’s statement, each account holder is entitled to claim up to ₹5 lakh under the Deposit Insurance and Credit Guarantee Corporation (DICGC) scheme. This means that deposits up to ₹5 lakh are insured and can be recovered.
As of September 30, 2024, a reassuring 94.41% of the bank’s total deposits were covered under DICGC insurance. While the bank’s closure is unfortunate, depositors with insured amounts can still breathe a sigh of relief.
Stay tuned for updates from the local administration and DICGC on the claims process.