In what could emerge as one of the first practical illustrations of the amended banking law governing tenure limits in Urban Co-operative Banks (UCBs), Delhi-based Jamia Cooperative Bank is set to witness a closely watched election, with its long-serving Chairman, M.Q.H. Beg, being found eligible to contest despite having held the post for more than 13 years.
The issue assumes significance in light of a recent amendment to the Banking Regulation Act, 1949. Through Section 10A(2A)(i), which came into effect on August 1, 2025, the maximum continuous tenure of directors of co-operative banks was increased from eight years to ten years. Significantly, the provision expressly excludes the Chairperson and Whole-time Directors from the tenure restriction.
The Jamia Cooperative Bank election has attracted attention because Delhi follows a co-operative governance structure that differs from that of most other states.
In most states, members elect the board of directors, and the elected directors subsequently choose the Chairman and Vice-Chairman from among themselves. Delhi, however, operates under a distinct framework under the Delhi Co-operative Societies Act, where elections are conducted separately for the posts of Chairman, Vice-Chairman, Women Directors and Directors.
It is learnt that Beg’s nomination paper has been accepted, paving the way for him to seek another term as Chairman.
Interestingly, eight directors of the bank who have already completed ten years in office are not contesting the current election, apparently in view of the amended tenure restrictions.
The contrasting situation—where long-serving directors are stepping aside while the Chairman remains eligible to seek re-election—has drawn attention within the co-operative banking sector. The bank’s elected structure comprises 12 Directors, one Chairman, one Vice-Chairman and two Women Directors.
The matter has drawn additional attention because Jamia Cooperative Bank had earlier approached the Delhi High Court seeking directions for the appointment of a Returning Officer after repeated representations to the Registrar of Cooperative Societies (RCS) allegedly received no response.
The High Court subsequently directed the RCS to expedite the election process and permitted the existing Board to continue as a caretaker committee until a newly elected Board assumes office, while restraining it from taking major policy decisions.
With the amended tenure provisions now in force, the Jamia Cooperative Bank election may serve as one of the earliest examples of how the new framework operates in states where the Chairman is elected directly rather than being chosen from among the board of directors.
