# RBI Cancels License of Jijamata Mahila Sahakari Bank: Can Customers Still Withdraw Their Money?
**Posted on October 9, 2025**
The Reserve Bank of India (RBI) has delivered a body blow to yet another struggling cooperative bank, cancelling the license of Jijamata Mahila Sahakari Bank Ltd. in Satara, Maharashtra, effective from the close of business on October 7, 2025. This women's cooperative, aimed at empowering rural depositors, had been teetering on the edge for years—its license was revoked in 2016, restored in 2019 after appeals, but plagued by non-cooperation in forensic audits and a nosedive in financial health. With around 1,500-2,000 depositors now in limbo, panic is palpable: Can they access their savings? The answer is a qualified yes—thanks to India's safety net via the Deposit Insurance and Credit Guarantee Corporation (DICGC). But immediate withdrawals from the bank itself? No. Here's the full picture on what happens next and how to protect your funds.
### Why the Shutdown? A Timeline of Troubles
Jijamata Mahila Sahakari Bank, founded to boost women's financial inclusion in Satara, hit rock bottom due to:
- **Capital Crunch and Poor Prospects**: The bank's net worth plummeted to negative levels, failing RBI's capital adequacy norms under the Banking Regulation Act, 1949 (as applicable to cooperatives).
- **Governance Gaffes**: Non-compliance with audits and regulatory directives, including a stalled forensic probe ordered post-2019 restoration.
- **Precedent of Instability**: RBI imposed restrictions in July 2025 under Section 35A, but the decline was irreversible—continuing operations would "prejudicially affect depositors."
RBI has directed the Maharashtra Registrar of Cooperative Societies to wind up the bank and appoint a liquidator, prohibiting all banking activities like accepting or repaying deposits. This isn't isolated—RBI has axed licenses for over 10 urban co-ops in recent years amid a cleanup drive.
### The Big Question: Can You Withdraw Your Money?
**Short-Term Reality**: No, you can't withdraw directly from Jijamata Mahila Sahakari Bank anymore. Post-cancellation, the bank is frozen—no deposits, no payouts, no transactions. If you haven't pulled funds by October 7, they're locked until the liquidation process unfolds.
**The Safety Net: DICGC Insurance Kicks In**
Fear not—India's deposit insurance scheme ensures most depositors won't lose a rupee up to Rs 5 lakh (principal + interest) per depositor, across all accounts in the same capacity (e.g., individual, joint). Here's how it works:
| Aspect | Details |
|-------------------------|---------|
| **Coverage Limit** | Up to Rs 5 lakh per depositor (covers savings, FDs, current accounts, etc., but excludes inter-bank or govt deposits). |
| **Payout Timeline** | Within 90 days of license cancellation (by January 5, 2026), faster than the old 6-8 months. DICGC pays the liquidator, who disburses to you. |
| **Who Gets Full Amount?** | ~99% of Jijamata's depositors (small savers under Rs 5 lakh) will recover everything; larger deposits get partial via liquidation. |
| **Claim Process** | Submit willingness to DICGC via the liquidator (details forthcoming). No action needed if under Rs 5 lakh—automatic eligibility. |
| **Joint Accounts** | Insured separately up to Rs 5 lakh per holder, but calculated as one unit if in the same right. |
This scheme is mandatory for all banks—no opt-out—and covers co-ops like Jijamata. In past cases (e.g., Madgaum Urban Co-op in 2021), 99% got full refunds swiftly.
### What Should Depositors Do Right Now?
1. **Stay Calm**: Your money isn't vanishing—DICGC has a stellar track record, having paid out Rs 37.79 crore in claims till June 2025 across failed banks.
2. **Contact the Liquidator**: Once appointed (expected soon), reach out for claim forms. Monitor RBI/DICGC websites or local notices.
3. **Check Balances**: Tally your total deposits (all accounts combined) against the Rs 5 lakh cap.
4. **Avoid Panic Runs Elsewhere**: This is co-op specific; major banks are rock-solid.
5. **Learn the Lesson**: Diversify—spread savings across banks to maximize coverage. Tools like RBI's Sachet portal can flag risky institutions.
RBI's crackdown protects the system, but it stings for loyal customers, many from underserved communities. If you're affected, helplines like DICGC (022-2280 4464) or RBI's Sachet (14448) are lifelines. In the end, while access is delayed, your money's safer than it seems—proof that India's banking shield holds firm.
*Have you faced a bank closure scare? Share your story below.*
**Sources:** Compiled from The Economic Times, Indian Cooperative, Moneylife, News18, Financial Express, DICGC FAQs, and DNA India. All details current as of October 9, 2025.
