Overview On December 5, 2025 , the Supreme Court made a significant ruling stating that funds belonging to a temple deity cannot be utilized to support financially distressed cooperative banks. This decision underscores the importance of protecting religious endowments and ensuring they are used solely for the benefit of the temple. Key Developments Supreme Court Observation: Temple money belongs to the deity and must be saved, protected, and utilized only for the interests of the temple. Bench Composition: The ruling was delivered by a Bench comprising Chief Justice Surya Kant and Justice Joymalya Bagchi . Kerala High Court Direction: The case originated from a direction by the Kerala High Court , instructing several cooperative banks to return deposits to the Thirunelly Temple Devaswom . Cooperative Banks Involved: The appeals against the High Court order were filed by Mananthawady Co-operative Urban Society Ltd and Thirunelly Service Cooperative Bank Ltd . High Court Order: The High Court had directed five cooperative banks to close the Devaswom's fixed deposits and refund the entire amount within two months, following repeated refusals by the banks to release the matured deposits. Background of the Case The case arose from a plea filed by the Thirunelly Devaswom after several cooperative banks refused to repay the temple's fixed deposits despite repeated requests. The High Court had directed Thirunelly Service Cooperative Bank Ltd , Susheela Gopalan Smaraka Vanitha Cooperative Society Ltd , Mananthawady Cooperative Rural Society Ltd , Mananthawady Cooperative Urban Society Ltd , and Wayanad Temple Employees Cooperative Society Ltd to return the funds within two months. Supreme Court's Rationale The Supreme Court emphasized that temple money cannot become a source of income or survival for a cooperative bank. The court questioned the logic of using temple funds to rescue banks in financial distress, suggesting that the money would be better placed in a healthy nationalized bank that could provide maximum interest. Implications for Cooperative Banks The Supreme Court 's refusal to entertain the pleas from the cooperative banks highlights the need for these institutions to establish credibility and attract customers and deposits through sound financial practices. The court suggested that if banks are unable to attract customers and deposits, it is their own problem. UPSC Relevance GS2: Polity and Governance This case is relevant to GS2 as it deals with the role of the judiciary in protecting the assets of religious institutions and ensuring good governance in financial institutions. GS3: Economy The case also touches upon the financial health and regulatory challenges faced by cooperative banks in India, making it relevant to GS3 . Key Terms Temple Devaswom: The administrative body managing the affairs and assets of a temple. Cooperative Banks: Financial institutions owned and controlled by their members, operating on the principle of cooperation. Fixed Deposits: A financial instrument providing a fixed rate of return for a specific period. Nationalised Bank: A bank owned and operated by the government.