RBI appointed Shri Raju S Nair, former Vice President, Federal Bank as ‘Administrator’ to manage the affairs of the Irinjalakuda UCB; Jijamata Mahila Sahakari Bank does not have adequate capital and earning prospects.
FinTech BizNews Service
Mumbai, October 7, 2025: The Reserve Bank has today superseded the Board of Directors of Irinjalakuda Town Co-operative Bank Ltd., for a period of 12 months. RBI today has also cancelled the licence of Jijamata Mahila Sahakari Bank.
Supersession of Board of Directors of Irinjalakuda Town Co-operative Bank Ltd.
In exercise of the powers conferred under Section 36 AAA read with section 56 of the Banking Regulation Act, 1949 (As Applicable to Co-operative Societies), the Reserve Bank has today superseded the Board of Directors of Irinjalakuda Town Co-operative Bank Ltd., for a period of 12 months. Consequently, the Reserve Bank has appointed Shri Raju S Nair, former Vice President, Federal Bank as ‘Administrator’ to manage the affairs of the bank during this period. The Reserve Bank has also appointed a ‘Committee of Advisors’ to assist the Administrator in discharging his duties. The members of the Committee of Advisors are Shri Mohanan K (former Deputy General Manager, South Indian Bank) and Shri T.A. Mohamed Sageer (former Vice President, Federal Bank).
The above action is necessitated due to certain material concerns emanating from continued poor financial condition and governance standards observed in the bank. Attention is also drawn to the Press Release 2025-2026/807 dated July 30, 2025, published by Reserve Bank on its website for information of the public, that certain directions have been issued to this bank, under sub section (1) of Section 35 A of the Banking Regulation Act, 1949, read with Section 56 of the Banking Regulation Act, 1949 (as applicable to Co-operative Societies).
RBI cancels the licence of Jijamata Mahila Sahakari Bank Ltd., Satara, Maharashtra
The Reserve Bank of India (RBI), vide order dated October 06, 2025, has cancelled the licence of “Jijamata Mahila Sahakari Bank Ltd., Satara, Maharashtra.” The banking licence of the bank was earlier cancelled vide order dated June 30, 2016 and was restored on October 23, 2019 on an appeal made by the bank. The Appellate Authority, which allowed the appeal, directed that a forensic audit of the bank be conducted for the FY 2013-14 to assess the financial position. RBI appointed a forensic auditor, but the audit could not be completed due to the non-cooperation of the bank. Meanwhile, the financial position of the bank continued to deteriorate as assessed by RBI.
The Reserve Bank has therefore cancelled the licence of the bank as:
2. Consequently, the bank ceases to carry on banking business with effect from the close of business on October 07, 2025. The Registrar of Cooperative Societies, Maharashtra has also been requested to issue an order for winding up the bank and appoint a liquidator for the bank.
3. Consequent to the cancellation of its licence, “Jijamata Mahila Sahakari Bank Ltd., Satara, Maharashtra” is prohibited from conducting the business of ‘banking’ which includes, among other things, acceptance of deposits and repayment of deposits as defined in Section 5(b) read with Section 56 of the Banking Regulation Act, 1949 with immediate effect.
4. On liquidation, every depositor would be entitled to receive deposit insurance claim amount of his/her deposits up to a monetary ceiling of Rs5,00,000/- (Rupees five lakh only) from Deposit Insurance and Credit Guarantee Corporation (DICGC) subject to the provisions of DICGC Act, 1961. As on September 30, 2024, 94.41% of the total deposits were covered under DICGC insurance.
