The Reserve Bank of India (RBI) has removed Babasaheb Patil, a minister from the Maharashtra Nationalist Congress Party (NCP), from the board of the Latur District Central Cooperative Bank. This action was taken due to an alleged violation of the 10-year tenure limit imposed on bank directors.
He sought their disqualification. Meanwhile, Patil has disputed the RBI’s interpretation of the tenure provision. “The RBI’s decision is improper as we cannot be removed under that particular** provision.
Under Sections 10A(2A)(i) and 56 of the Banking Regulation Act, 1949, any director of a cooperative bank who has completed a continuous tenure of 10 years on or after August 1, 2025, the date on which the relevant amendment came into force, shall be ineligible to continue in office. Satish Sheshrao Jadhav, a member and authorised voter representative of the Latur District Central Cooperative Bank, filed a complaint with the RBI on May 25, alleging that the state cooperation minister himself had violated the norms, as he was one of the bank’s 19 directors who had crossed the 10-year tenure limit.
Patil, however, has called the decision “improper” and said he will challenge it in the high court. Hence, I will challenge it before the high court in my capacity as a bank director,” he said.
