The National Federation of Urban Co-operative Banks and Credit Societies Ltd. (NAFCUB) has formally entered the fray against the director tenure restrictions imposed on Urban Co-operative Banks (UCBs), signalling a coordinated national response to the contentious regulatory provisions.
NAFCUB has constituted a high-level committee under the leadership of its President Laxmi Das to examine the implications of the directors’ tenure cap and related eligibility norms, and to chart out the future course of action. The first meeting of the committee is scheduled to be held on January 5, 2026.
The committee comprises senior leaders and experts from the cooperative banking sector, including Jyotindra Mehta, Milind Kale, Raghavendra Rao, O.P. Sharma, Advocate K. Jayavarma and Ajay Barmechha. The panel is expected to deliberate on the legal, constitutional and policy aspects of the tenure restrictions and explore appropriate representations and possible legal remedies.
It may be recalled that NAFCUB, the national apex body representing Urban Co-operative Banks across India, had decided to constitute such a committee during its last Board meeting held virtually, in view of growing concerns within the sector over regulatory overreach and the erosion of cooperative autonomy.
With NAFCUB now actively taking up the issue at the national level, opposition to the director tenure cap has gained significant momentum, reflecting widespread unease among UCBs across the country over measures perceived as undermining cooperative democracy and governance.
