Addressing a technical session organised by the Cooperative Election Authority on Thursday at Vigyan Bhawan, cooperative leader and President of the National Urban Cooperative Finance and Development of Corporation (NUCFDC) Jyotindra Mehta stressed the need for gradual changes in the boards of cooperative banks to maintain stability in the sector.
Referring to the recent amendments in the Banking Regulation Act, which bar directors of cooperative banks from holding positions for more than ten years, Mehta said the transition should be managed carefully. He suggested that instead of replacing an entire board at once, changes should be introduced gradually, allowing experienced directors to continue while new members are inducted.
“Replacing the entire board in one go can disrupt institutional functioning. A gradual transition will ensure continuity while strengthening democratic governance,” he said.
Speaking on election practices in cooperatives, Mehta described unopposed elections as a “double-edged sword.” While they may sometimes reflect consensus among members, he noted that such outcomes could also result from the dominance of influential groups if democratic processes are not fully followed.
Recalling earlier election scenarios, he said there were times when genuine members found it difficult to even enter the venue for filing nomination papers, while powerful groups controlled the process from outside.
He also emphasised the importance of member education and active participation, noting that although members are often described as the “owners” of cooperatives, their involvement in elections remains limited in many societies.
Highlighting broader concerns, Mehta cautioned that political interference and power struggles within cooperatives can weaken the spirit of the cooperative movement, which is fundamentally aimed at social and economic upliftment. He urged societies to strengthen democratic processes and align their bye-laws with regulatory provisions to ensure transparent and credible elections.