The National Federation of State Cooperative Banks Ltd. (NAFSCOB) has issued a “most urgent” communication to all State Cooperative Banks (StCBs) and District Central Cooperative Banks (DCCBs), seeking information under Section 10A(2)(A)(i) of the Banking Regulation Act.
According to the letter, newly inserted provisions cap the tenure of directors at eight years in banking companies and ten years in cooperative banks. The matter has already been taken up with the Reserve Bank of India, seeking exemption for directors of StCBs and DCCBs.
The RBI has, in response, desired a list of cooperative banks likely to be affected by the amended provisions. NAFSCOB has therefore asked StCBs to furnish details of such entities along with supporting information on an urgent basis.
StCBs have been advised to collect data from DCCBs within their respective states, while DCCBs have been asked to route submissions through their concerned StCBs and mark a copy to NAFSCOB.
The federation will compile the inputs and submit a consolidated report to the Ministry of Cooperation for further examination of the matter with the RBI.
All institutions have been asked to treat the matter as “most urgent” and submit the required information within one week.
