The Board of Directors of the National Federation of State Cooperative Banks (NAFSCOB) met at its office in Vashi, Navi Mumbai on Tuesday and discussed several important matters, including the completion of the Board’s tenure, the appointment of a new Managing Director, proposed changes in the Vice-Chairman positions as suggested by the Cooperative Election Authority, and other regulatory and policy issues.
The meeting was chaired by NAFSCOB Chairman Konduru Ravinder Rao and was attended by Jitendra Bahadur Singh, Devendra Singh Shyam, Managing Directors of State Cooperative Banks from Delhi, Tripura, Meghalaya and Sikkim, among others. NAFSCOB Managing Director Bhima Subrahmanyam also attended the meeting.
During the meeting, it was noted that the present term of the NAFSCOB Board of Directors is due to end on December 28, 2025. In view of the completion of the Board’s term and the fact that elections to the new Board are yet to be held, the issue of ensuring continuity in the functioning of the federation was discussed. The Board decided to vest necessary powers with the present Managing Director to run the affairs of NAFSCOB and carry out day-to-day operations until a new Board is elected.
The matter relating to the ongoing recruitment of a new Managing Director of NAFSCOB was also taken up for discussion. The Board decided to keep the matter in abeyance for the time being and to take up the appointment process only after the constitution of the new Board.
It was informed during the meeting that a total of 38 applications had been received for the post of Managing Director. Out of these, 23 candidates were shortlisted for the first phase of interviews, of which 16 candidates appeared in person. It was discussed that, from among these candidates, a further shortlist would be prepared and the selected candidates would be called again for interviews after the new Board assumes charge.
The Board further discussed matters relating to the Cooperative Election Authority. Issues were raised regarding observations made on the size of the Board of Directors and the suggestion to reduce the number of Vice-Chairman posts. These matters were discussed during the meeting.
It was also learnt that the agenda item seeking participation and support from State Cooperative Banks towards share capital contribution of up to Rs 5 crore for the proposed national-level cooperative entity, ‘Cooperative Banking of India (COBI)’, also came up for discussion.
Apart from these issues, the Board discussed and took note of various regulatory and policy matters. These included the Gazette Notification issued by the Ministry of Finance, Department of Financial Services, on the Banking Companies (Nomination) Rules, 2025, covering nomination in respect of bank deposits, articles kept in safe custody and safety lockers.
The meeting also noted the RBI circular on investment by State Cooperative Banks and Central Cooperative Banks in the Shared Service Entity established by NABARD, as well as RBI press releases relating to amendments to various directions and draft regulatory frameworks.
Other matters discussed included RBI Directions on nomination facilities, notification on the Integrated Ombudsman Scheme, 2021, draft RBI Directions on lending to related parties by rural cooperative banks, NABARD’s approach note on establishing new State and District Central Cooperative Banks, issues relating to short-term agricultural credit at 7 percent interest, and the status of licensing and scheduled status of cooperative banks.
The Board also noted the minutes of the recent meetings of the RBI Monetary Policy Committee and discussed the proposal to amend the Bye-laws of NAFSCOB in line with the provisions of the Multi-State Cooperative Societies Act and the rules framed thereunder.
