The Reserve Bank of India (RBI) has issued a communication to certain cooperative banks, drawing attention to the provisions governing the tenure of directors under the Banking Regulation Act, 1949.
In a message sent on Thursday by an official of RBI’s Department of Supervision, cooperative banks were advised to refer to Section 10A(2A)(i), read with Section 56 of the Banking Regulation Act, 1949, as amended by the Banking Laws (Amendment) Act, 2025, which came into force on August 1, 2025.
The communication stated that a director who has completed a continuous tenure of 10 years or more on or after August 1, 2025, is ineligible to continue holding office.
Issued under the subject line, “Directors Exceeding 10-Year Tenure in a Cooperative Bank,” the communication highlights the amended legal provisions relating to board governance and director tenure in cooperative banks.
Indian Cooperative has reviewed a copy of the communication that came into its possession. The exact number of cooperative banks that received similar communications could not be independently verified.
The communication was issued by an official of the Department of Supervision, Central Office, Mumbai.
