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.