In a significant development in India’s cooperative banking sector, the Central Registrar of Cooperative Societies (CRCS) under the Ministry of Cooperation has appointed Subrata Kumar Nanda, Chief General Manager of the National Bank for Agriculture and Rural Development (NABARD), as Administrator of the National Federation of State Cooperative Banks Limited (NAFSCOB).
The order, issued on Friday, follows the expiry of the tenure of the NAFSCOB Board of Directors on December 28, 2025, before fresh elections could be conducted. The appointment comes amid a governance deadlock triggered by delays in submission of amended bye-laws required under the amended Multi-State Cooperative Societies (MSCS) Act, 2002.
According to the government order, NAFSCOB had informed the Cooperative Election Authority on December 29, 2025, regarding the completion of the Board’s tenure. However, the federation failed to submit a complete proposal along with amended bye-laws in line with the provisions introduced through the 2023 amendments to the MSCS Act.
Officials stated that the absence of approved amended bye-laws created a “stalemate” in the constitution and functioning of the Board, making it impossible to proceed with the election process within the prescribed timeline.
The situation attracted the provisions of Section 123(1) of the amended MSCS Act, empowering the Central Government to intervene in the administration of the multi-State cooperative society.
Invoking these provisions, the Ministry of Cooperation appointed Nanda as Administrator for a period of six months from the date of the order or until a newly elected Board assumes office, whichever is earlier.
The order further clarified that after the 2023 amendments to the MSCS Act, there is no legal provision allowing continuation of the Board beyond its fixed five-year term. Consequently, once the Board’s tenure expired without elections being completed, the federation had to be placed under administrative supervision.
As Administrator, Nanda will exercise all powers of the Board under the supervision of the Central Government. He has also been tasked with taking necessary steps to facilitate the constitution of a new Board in accordance with the federation’s bye-laws and statutory provisions before completion of his tenure.
NAFSCOB is a specified multi-State cooperative society under the MSCS Act and functions as the apex federation representing State Cooperative Banks (StCBs) across the country. The federation plays a crucial role in strengthening the cooperative credit structure, coordinating policy issues and representing the interests of cooperative banks at the national level.
The appointment is expected to ensure continuity in the functioning of the federation while paving the way for fresh elections and regulatory compliance under the amended cooperative law framework.