The Indian Cooperative Desk has received a wide range of responses on the Reserve Bank of India’s draft governance amendments proposing a three-year cooling-off period for directors of co-operative banks.
Public feedback on the proposed norms has been mixed but largely constructive, reflecting both support for stronger governance and concerns over implementation.
Ravindra Ostwal said that the “intent and spirit of the law should be clearly explained first” and suggested that stakeholder feedback be taken in stages, with comments on the cooling-off period invited only after broader acceptance of the core principle.
Francis Joseph D’Costa supported the proposed amendments, stating that they should be implemented immediately, while urging the RBI to ensure strict compliance by all cooperative banks.
Mohammad Hanif Mitha backed the reform but suggested removing the upper age cap of 70 years for directors, particularly for professionals with at least ten years of senior-level banking experience.
Namrata Shenoy strongly supported the amendment, arguing that directors should not continue beyond ten years, citing concerns over prolonged control, misappropriation of funds, and harassment of employees in some cooperative banks.
H.K. Chhabra sought clarity on whether the ten-year tenure cap and cooling-off norms would apply retrospectively or prospectively, especially for directors who had already completed ten years as of the prescribed cut-off dates.
Suhail Azeem Khan described the amendment as necessary for the cooperative banking sector and supported providing opportunities to experienced banking professionals with long executive backgrounds.
Overall, the responses reflect broad support for the RBI’s governance objectives, alongside requests for clarity on implementation and consideration of professional expertise.
