The Maharashtra Government has directed the immediate implementation of the provisions of the Banking Laws (Amendment) Act, 2025 relating to the tenure of directors in District Central Cooperative Banks (DCCBs) across the state.
In a communication, the Cooperation, Marketing and Textiles Department asked the Commissioner and Registrar of Cooperative Societies to issue necessary instructions to regional officers and DCCBs to ensure compliance with the provision.
The state government had earlier sought clarification from the Reserve Bank of India regarding the interpretation of the amended provisions.
Responding to the request, the RBI stated that under Section 10A(2A)(i) read with Section 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.
The RBI also conveyed its concurrence with the interpretation expressed by the state government in this regard.
Following this clarification, the state government has directed that the provisions be implemented with immediate effect, and necessary instructions be issued to all concerned authorities and DCCBs to ensure compliance.
It is learnt that elections to the Akola-Washim District Central Cooperative Bank are currently underway, and the directive may impact ongoing and upcoming DCCB elections across Maharashtra, with several senior political and cooperative leaders potentially becoming ineligible under the amended provisions.
This is good amendment made in Act by RBi. This wil help in thr development of the bank especially for the employees wherein they are most effected by the long term directors harassment and exploitation with their own rules and regulation. I am.one such female employee worked in kodagu dcc bank for 19 years and took VRS personal issues especially family, wherein the bank instead of accepting my VRS issued dismiss order without giving me any benefits.
It is a good move by the Govt. , but here there are couple of issues 1) Continuous,10 years will be handled by Co-operators ( Politicians ) by breaking in between , ie they will resign for a month and again get Coopted on the Board and hence continuous 10 years will not hold good .2) To become a President or VP the Director has to have some experience by the time they get experience say by getting elected twice ie 10 yrs they will be out of the Board . 3) Only non Politician Board is the answer for many problems , people who are MLA’s MLC’s and MP s and there family should not be in the Board which is most important. . 4) Apart from 2 States no one has implemented here who is responsible for the implementation they should be held responsible because most of the States won’t implement at any cost .