The 2025 amendment to the Banking Regulation Act, 1949, limits a director’s tenure to ten years, effective from August 1, 2025. This has lead to ambiguity in Maharashtra’s District Central Cooperative Bank circles and elections. The “fit and proper” provision remains in force, as proven by the Dharashiv case. However, the central legislation alone cannot end monopolistic practices. The Returning Officer does not have the authority to apply the BR act. This anomaly is unlikely to help the cooperative sector.
Ten-Year Tenure Limit for Directors of Cooperative Banks Provision under the Banking Regulation Act, 1949, Provisions of the Maharashtra Cooperative Societies Act, Opinion of the Maharashtra Government’s Law and Judiciary Department (18 August 2026), and Ground-Level Implementation...(Read the full article in the September 2026 issue)