The Reserve Bank of India (RBI) has cancelled the licence of Jijamata Mahila Sahakari Bank based in Satara in Maharashtra to carry on banking business. The order was made effective from the close of business on July 4, 2016.
The Registrar of Co-operative Societies, Maharashtra has also been requested to issue an order for winding up the bank and appoint a liquidator for the bank.
The Reserve Bank cancelled the licence of the bank as the bank does not comply with the provisions of Sections 11(1) and 18 of the Act of the Banking Regulation (B R) Act, 1949 (AACS).
The bank is not in a position to pay its present and future depositors and also the affairs of the bank are being conducted in a manner detrimental to the interest of the present and future depositors and thus the bank did not comply with several sections of Banking Act.
The bank has not made any efforts to present a concrete proposal with regard to its revival. Moreover, despite being advised to explore the possibility of merger with a strong bank, no proposal has been made by the bank in this regard, read a press release from the RBI.
