The Karnataka High Court has deferred to August 14, 2026, the hearing in a batch of writ petitions challenging the Reserve Bank of India’s (RBI) governance directions relating to the tenure of directors of cooperative banks. The matter, listed before the Court on Thursday, could not be taken up for hearing.
The petitions have been filed by the Karnataka State Urban Cooperative Banks Federation, Nyayamitra Sahakari Bank Niyamitha, Tumkur Grain Merchants Cooperative Bank, Tumkur Veerashaiva Cooperative Bank, Malleswaram Cooperative Bank, and several other cooperative banks.
The petitioners have challenged RBI Circulars dated November 28, 2025, and May 25, 2026, contending that the directions are ultra vires the powers conferred on the RBI under the Banking Regulation Act, 1949.
According to the petitioners, matters relating to the governance and tenure of directors of cooperative societies fall within the legislative domain of the States under Entry 32 of the State List and are governed by the Karnataka Cooperative Societies Act, 1959. They have sought the quashing of the RBI circulars and an interim stay on their implementation.
Earlier, on June 15, 2026, the High Court had issued notices to the Union of India, the Reserve Bank of India, and the State Government, while directing the respondents not to take any coercive action against the petitioners. The interim protection is expected to continue until the next date of hearing.
