Jijamata Mahila Sahakari Bank Ltd., Satara, Maharashtra

RBI cancelled the licence of Jijamata Mahila Sahakari Bank Ltd., Satara, Maharashtra. The bank must stop banking business and winding-up proceedings are to be initiated.

The bank can no longer conduct banking business, including accepting or repaying deposits, with immediate effect. Depositors are pushed into the liquidation/insurance process, with claims payable up to the DICGC limit of ₹5,00,000 subject to the DICGC Act, 1961. The winding-up and liquidation process will follow under the cooperative societies framework.

• Section 11(1) of the Banking Regulation Act, 1949
• Section 22 (3)(d) read with Section 56 of the Banking Regulation Act, 1949
• Sections 22(3)(a), 22(3)(b), 22(3)(c), 22(3)(d) and 22(3)(e) read with Section 56 of the Banking Regulation Act, 1949

+1 more in the case brief

RBI cancelled the licence of Jijamata Mahila Sahakari Bank Ltd., Satara, Maharashtra. The bank was also prohibited from conducting banking business and liquidation proceedings were set in motion.

The bank cannot continue banking operations from the effective date, and winding-up/liquidation steps will follow. Depositors become eligible for DICGC repayment up to the statutory ceiling of ₹1,00,000, subject to usual terms and conditions; other stakeholders are affected through the liquidation process.

• Sections 11(1) and 18 of the Banking Regulation (B R) Act, 1949 (AACS)
• Section 22(3)(a)
• Section 22(3)(b)

+5 more in the case brief

RBI cancelled the licence of Jijamata Mahila Sahakari Bank Limited, Satara, Maharashtra. The bank can no longer conduct banking business, including accepting or repaying deposits.

The bank must stop carrying on banking business immediately and cannot accept or repay deposits. This affects customers/depositors and any counterparties relying on the bank’s banking operations.

• Section 22 of the Banking Regulation Act, 1949 (As applicable to Co-operative Societies) read with Section 56 of Banking Regulation Act, 1949
• Section 5(b) of the Banking Regulation Act, 1949 (As applicable to Co-operative Societies)

RBI extended the Section 35A directions on Jijamata Mahila Sahakari Bank Ltd., Satara, Maharashtra until July 09, 2016. The original operational restrictions remain in force unchanged.

The bank continues to operate under the same RBI-imposed restrictions through July 09, 2016, subject to review. Customers and counterparties remain affected by any operational limits already in place under the directive, and the bank must comply with the unchanged terms of the Section 35A order.

• Section 35A of the Banking Regulation Act, 1949 (AACS)

RBI placed Jijamata Mahila Sahakari Bank Ltd., Satara under Section 35A Directions restricting core banking operations. Depositor withdrawals were capped at ₹1,000 per account subject to conditions.

The bank must operate under RBI-imposed restrictions and cannot expand lending, accept fresh deposits freely, or make many payments or asset disposals without prior approval. Depositors are affected by the withdrawal cap of ₹1,000 per account, subject to the Directions, until RBI modifies the order.

• Section 35A of the Banking Regulation Act, 1949
• Section 56 of the Banking Regulation Act, 1949