| The Reserve Bank of India stopped clearing services of Mahila Bank with effect from November 1, 2006, and appointed RajBank as the administrator from November 3, 2006. |
| On February 1, 2007, the RBI cancelled the bank's licence invoking Section 35A of the Banking Act 1939 and termed Rs 5.95 crore towards loans and advances as `negative networth'. |
| Speaking to Business Standard, Joshi said, "Our top priority would be to disburse the funds of the depositors. However, we would plug in our full efforts so that the disbursement procedure is completed within 4-6 months." |
| He said that the depositors need not to worry as majority of the deposits had been insured vide insurance provided by the Deposit Insurance & Credit Guarantee Corporation (DICGC), assured Joshi. He said necessary action would be initiated against the guilty using the legal provisions as prescribed under the co-operative banking code of conduct. |
| The bank would also embark on a drive to recover bed debts soon. Meanwhile, Satya Prakash Khokhra, general manager, RajBank, also assured their full cooperation. |
| However, Meena Thakore, chairman of Mahila Bank, was not available for a comment. As on November 1, 2006, the total depositors' base of Mahila Bank stood at 13,000 with Rs 10 crore deposits and Rs 8 crore towards loans and advances. |
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