The National Federation of Urban Cooperative Banks and Credit Societies (NAFCUB) convened its board meeting in Delhi on Sunday, where a wide range of sectoral and organizational issues were discussed, with a key focus on regulatory developments and future planning.
A major highlight of the meeting was the roadmap for NAFCUB’s golden jubilee celebrations, as the apex body of urban cooperative banks prepares to complete 50 years next year.
The board discussed plans to commemorate the milestone through large-scale events, member engagement initiatives, and efforts to expand its network. In this context, it was also proposed to induct new members and consider a subscription waiver for banks that have defaulted on membership dues.
A significant portion of the meeting was devoted to deliberations on the amended provisions of the Banking Regulation Act, particularly the introduction of a tenure cap for directors of urban cooperative banks.
Concerns were raised over the implications of these norms on the autonomy and governance of cooperative banks. During the discussions, it was informed that the Maharashtra Urban Cooperative Banks Federation is preparing to challenge the amendments before the Bombay High Court, with the petition likely to be filed in the first week of April.
Importantly, the board also discussed the concept of gradual or staggered changes in the boards of cooperative banks, instead of replacing the entire board at one time. It was decided to take up this proposal with regulators for consideration. The idea was originally mooted by Jyotindra Mehta, President of NUCFDC, during a recent meeting organized by the Cooperative Election Authority in New Delhi, and found support among board members as a more balanced and practical approach to governance reforms.
The board also took note of the ongoing legal challenge before the High Court of Andhra Pradesh by the Andhra Pradesh State Cooperative Urban Banks & Credit Societies Federation Ltd.
The petition questions the constitutional validity of the Banking Laws (Amendment) Act, 2025 and the Banking Regulation (Co-operative Societies) Amendment Rules, 2025. It alleges that the Union of India, by empowering the Reserve Bank of India, has encroached upon the State’s legislative domain by intervening in board composition, director tenure, and internal management of cooperative banks, thereby undermining their democratic and autonomous character.
In addition, infrastructure-related matters were discussed, including proposals for constructing a new NAFCUB building and exploring the sale of its existing premises as part of long-term planning.
The meeting was attended by NAFCUB President Laxmi Das, along with board members H K Patil, Milind Kale, Jyotindra Mehta and other directors.